Which one of the following statements concerning the economic order quantity (eoq) model is true? an increase in holding cost will increase the eoq. a decrease in demand will increase the eoq. a decrease in holding cost will increase the eoq. none of the above is true.

C.- ↓Holding Cost  = ↑Economic Order Quantity

Explanation:

Economic Order Quantity = square root of (2DS/H)

Where:

Demand and setup are in the dividend part, if they increase, the EOQ increase.

Holding cost goes in the divisor, if they increase the EOQ decrease

A- FALSE ↑Holding Cost ≠↑Economic Order Quantity

B- FALSE ↑Demand ≠↑EOQ

C.- Correct ↓Holding Cost  = ↑Economic Order Quantity

  The divisor is lower, so the value increase.