EOQForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › EOQThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts June 9, 2016 at 9:32 pm #321766 sxhawtyMemberTopics: 56Replies: 25☆☆A company uses the Economic Order Quantity (EOQ) model and holds no buffer inventory. Its annual cost of holding one unit in inventory has decreased.EOQ – increase? decrease? or no effect? Total Annual cost of placing orders? – increase? decrease? or no effect? June 10, 2016 at 6:16 am #321825 John MoffatKeymasterTopics: 57Replies: 54654☆☆☆☆☆Look at the formula, and put some figures in if it helps/If holding cost decreases then EOQ increases.If EOQ increases then fewer orders are needed so annual cost of placing orders decreases.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In