If the factors in the numerator (the cost of placing an order and the periodic demand) increase, it will cause the EOQ to increase and vice versa. If the factor in the denominator (the carrying cost per unit per period) increases, it will cause the EOQ to decrease, and vice versa. The cost per order is in the numerator and thus a decrease in the cost per order will result in an decrease in the economic order quantity, not an increase. If the factors in the numerator (the cost of placing an order and the periodic demand, or annual sales) increase, it will cause the EOQ to increase and vice versa. If the factor in the denominator (the carrying cost per unit per period) increases, it will cause the EOQ to decrease, and vice versa. The periodic demand, or annual sales, is in the numerator and thus an decrease in the periodic demand will result in a decrease in the economic orderquantity, not an increase. The safety stock level is not a part of the Economic Order Quantity model. Thus a change in the safety stock level will have no effect on the economic order quantity. If the factors in the numerator (the cost of placing an order and the periodic demand) increase, it will cause the EOQ to increase and vice versa. If the factor in the denominator (the carrying cost per unit per period) increases, it will cause the EOQ to decrease, and vice versa. The carrying cost per unit is in the denominator and thus a decrease in the carrying cost will result in an increase in the economic order quantity.
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