Final answer:
No, if the carrying cost in the EOQ model were to double, the EOQ would not double. It would increase but by the square root of two, which is approximately 1.414, not by a factor of two. option (2
Step-by-step explanation:
In the simple Economic Order Quantity (EOQ) model, the statement that if the carrying cost were to double, the EOQ would also double is false. EOQ is calculated using the formula: √(2DS/H), where D is the demand rate, S is the order cost, and H is the carrying cost per unit per period. If the carrying cost (H) were to double, the EOQ would change dependent on the square root of the increase in H.
Therefore, the EOQ would increase but not double, since the square root of two is approximately 1.414, and not 2. This implies that EOQ varies with the square root of the inverse of carrying cost changes.