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[answered] Bonus Question: The curve below represents the holding (car


Multiple choice about holding, ordering and total costs .


Bonus Question:

 

The curve below represents the holding (carrying) cost and the

 

ordering cost in a particular inventory situation in which all of the EOQ

 

assumptions are met. The optimal (minimum cost) quantity is found to

 

be 1900. Suppose the holding cost per unit per year(Ch )increases

 

while all other costs and the annual demand remain constant. The total

 

annual ordering cost for the optimal solution would:

 

(HINT: Draw a new holding cost curve on the graph using a higher Ch) Answer A. increase

 

B.

 

decrease

 

C. not

 

change

 


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