General Studies · Inventory Management
Make Co determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1EOQ will decrease, and Total Annual Holding Cost will decrease✓
- 2EOQ will increase, and Total Annual Holding Cost will decrease
- 3EOQ will decrease, and Total Annual Holding Cost will increase
- 4EOQ will increase, and Total Annual Holding Cost will increase
Correct answer
EOQ will decrease, and Total Annual Holding Cost will decrease
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Inventory Management MCQs →Want more practice questions on Inventory Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Inventory Management