60.1K
Verified Solution
Link Copied!
Which of the following statements about the optimal economic order quantity (EOQ) model is FALSE?
In the EOQ model, the annual carrying cost of inventory increases with the order quantity.
In the EOQ model, the annual order cost decreases with the order quantity.
The EOQ model does not assume constant inventory usage or sales and instantaneous inventory replenishment.
The optimal EOQ occurs when annual carrying costs equal annual order costs.
Answer & Explanation
Solved by verified expert
