railway RRB JE (CBT I + CBT II) Mock Test 2024 Industrial Engineering Production Planning and Inventory Control Inventory Control
Which of the following statements concerning the basic EOQ model is true?
1
A decrease in demand will increase the EOQ value
2
If an actual order quantity is smaller than-the EOQ, the annual holding cost is less than the annual ordering cost.
3
An increase in holding cost will increase the EOQ value.
4
In the EOQ formula there is an inverse relationship between setup and carrying costs.