Moving to the next question prevents changes to this answer Question 17 of 33 Qu

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Moving to the next question prevents changes to this answer Question 17 of 33 Question 17 1 points Save Answer Which of the following statements about the basic EOQ model is false? A. If the setup cost were to decrease, the EOQ would fall. B. If annual demand were to double, the number of orders per year would increase. C. If the ordering cost were to increase, the EOQ would rise. D. If annual demand were to double, the EOQ would also double. E. All of the above statements are true. Question 17 of 33> Moving to the next question prevents changes to this answer. 0 Type here to search

Explanation / Answer

Solution : Option : D

EOQ = Square Root ( 2 * Demand * Ordering Cost / Setup Cost)

So, if Setup cost decrease, EOQ also decrease

If Annual demand doubles, EOQ increases

If Ordering Cost increases, EOQ increases

But if Annual demand double, EOQ will increase but only by Square Root of 2 times.

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