Question:-
In the EOQ model, if the unit ordering cost is doubled, the EOQ
Option (A)
Is halved
Option (B)
Is doubled
Option(C)
Increases 1.414 times
Option(D)
Decreases 1.414 times
Correct Option:
(C)
Question Solution:
EOQ =
If C0’ = 2C0
When EOQ’ =
Þ EOQ’ = Ö2EOQ
Þ EOQ = 1.414 EOQ
question-answer-faq-8889