Which of the following statements is true of the the economic order quantity decision model?
◦ The economic order quantity increases with higher demand and higher carrying costs and decreases with higher ordering costs.
◦ The simplest version of the economic order quantity model assumes there are only ordering costs, carrying costs, stockout costs, and purchasing costs.
◦ It assumes the purchase order lead time is not known with certainty.
◦ The larger the order quantity, the lower the annual relevant ordering costs and the higher the annual relevant carrying costs.