QUESTION
Which of the following statements about the EOQ model is NOT correct?
O If the unit fixed ordering cost increases, the optimal order quantity increases, and the optimal ordering + holding cost increases.
O If the annual inventory holding cost rate increases, the optimal order quantity decreases, and the optimal ordering + holding cost decreases.
0 If the annual demand increases, the optimal order quantity increases, and the optimal ordering + holding cost increases.
O If the unit purchasing cost increases, the optimal order quantity decreases, and the optimal ordering + holding cost increases.
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QUESTION
A Costco store has annual sales of $4 million, cost of goods sold of $1.5 million, inventory of $1 million, and net income of $2 million. What is the store’s annual inventory turns?
O 1.5 O 2 O 2.5
O 4
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