Question:-
If demand is doubled and ordering cost unit cost and inventory carrying cost are halved, then what will be the EOQ ?
Option (A)
Half
Option (B)
Same
Option(C)
Twice
Option(D)
Four times
Correct Option:
()
Question Solution:
EOQ = Ö(2RC0/Cc)
When demand is doubled R’ = 2R
When ordering cost is halved C’0 = (C0/2)
When carrying cost is halved C’c = Cc/2

= Ö2 EOQ = 1.414 EOQ
\ Answer is None
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