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Part 1:A company is using the Economic Order Quantity (EOQ) model to manage its inventories. Suppose its inventory holding cost per unit per year doubles while the annual demand and the ordering cost per order do not change. What will happen to the EOQ?
It doubles.
It increases by 41.42%.
It remains the same.
The EOQ reduces by about 30%.
It quadruples (increases by 400%).
What protocols, if any, should be considered in this needs assessment?
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