question archive Which of the following statements is NOT true of Economic Order Quantity? A
Which of the following statements is NOT true of Economic Order Quantity? A
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Which of the following statements is NOT true of Economic Order Quantity? A. The economic order quantity mathematically determines the minimum total inventory cost B. The EOQ is directly proportional to the sales per period C. The optimal order size is determined by the EOQ model D. The EOQ ignores inventory reorder costs and inventory carrying costs
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Economic order quantity will be including the inventory carrying cost in calculation because it will be undertaking the carrying cost in form of the interest rate.
All the statements are false.
Correct answer is option( D) The economic reorder quantity ignores inventory reorder cost and inventory carrying cost.
