Answer Happy

Conceptual Question 12-1 Which of the following... Which of the following is NOT an assumption of the EOQ model? It is possible to receive a purchase discount if the order quantity is sufficiently large. There is a fixed cost to submit each order that is independent of the amount ordered. Demand occurs at a constant rate per unit of time. There is a cost to hold each unit of inventory per unit of time.
If the order quantity doubles but the flow rate remains constant, what happens to the average amount of time a unit spends in inventory? Decreases by more than 50 percent. Decreases by 50 percent. Remains unchanged. Increases by 50 percent. Increases by more than 50 percent.