Question 12: A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is:
a) three times as large
b) one-third as large
c) nine times as large
d) one-ninth as large
e) cannot be determined
Please select the right answer and explain how you have calculated it.
EOQ = SQRT ( 2 X Demand x Ordering Cost / Holding Cost)
Let 2 x ...