Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?
◦ The EOQ model combines several different item orders to the same supplier.
◦ When the interest rate drops, the inventory holding cost decreases and the EOQ decreases.
◦ If an order quantity is larger than the EOQ, the annual holding cost for cycle inventory exceeds the annual ordering cost.
◦ The EOQ model assumes a variable demand pattern.