Which of These Statements About EOQ Is Best

question 128

Multiple Choice

Which of these statements about EOQ is best?

• A)Under the assumptions made to develop the EOQ model, average inventory is one-half of the maximum inventory.
• B)The EOQ model is very sensitive to minor violations of the basic assumptions.
• C)The economic order quantity helps one estimate the cost of holding inventory.
• D)An increase in holding cost will increase the economic order quantity, holding all other factors constant.

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