Which one of the following statements concerning the economic order quantity

Question

Which one of the following statements concerning the economic order quantity (EOQ) is true?

A) The EOQ is the order quantity that minimizes annual inventory holding costs.

B) An increase in demand will increase the EOQ.

C) The time between orders (TBO) will increase with an increase in holding costs.

D) The EOQ formula assumes that there are only three relevant costs: holding, transportation, and setup.

Answer

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