If the demand for an item is doubled and the ordering cost

If the demand for an item is doubled and the ordering cost halved, the economic order quantity

EOQ ∝ √DC₀

	EOQ'	=	EOQ
	√D'C₀'		√DC₀

D' = 2D

C₀' =	1	C₀
	2

∴	EOQ'	=	EOQ
	√{ 2D × ( C₀ / 2 ) }		√DC₀

⇒ EOQ' = EOQ