When using the simple EOQ model to determine optimal order quantity, which of the following is true? A. Order quantity increases as order cost per order decreases
B. Order quantity decreases as order cost per order increases
C. Order quantity increases as holding cost per unit per year decreases
D. Order quantity decreases as holding cost per unit per year decreases

C. Order quantity increases as holding cost per unit per year decreases

Explanation:

the formula for calculating economic order quantity (EOQ) is:

EOQ = √(2SD/H)

If holding cost per unit (H) decreases, the EOQ will increase. Whenever you are dividing, if the denominator decreases, the result will be larger.

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

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