In the basic fixed-order quantity model, if annual demand doubles,

In the basic fixed-order quantity model, if annual demand doubles, the effect on the Optimal Order Quantity (EOQ) is:
     a. it doubles
     b. it is half its previous amount
     c. it is about 70% of its previous amount
     d. decreases by a factor of 2
     e. it increases by about 40%

 

Solution