Question

A factory has decided the economic order quantity for material Y. If there is an increase in the annual carrying cost of the material but the annual material usage, material cost per unit, and the cost of placing an order remain the same, then what will be the effect on the economic order quantity for material Y?

A EOQ will decrease up to a certain level of carrying cost and then increase.
B EOQ will remain the same.
C EOQ will decrease.
D EOQ will increase.
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