While Working a Simple EOQ Problem, You Notice That, with a Certain

question 18

Multiple Choice

While working a simple EOQ problem, you notice that, with a certain lot size, the annual ordering cost is exactly the same value as the annual inventory carrying cost. Which of the following is true?

• A) the lot size is the economic order quantity
• B) total cost is at its maximum
• C) the annual carrying cost will decrease if the order quantity is increased
• D) all of the above
• E) none of the above; the phenomenon is merely a coincidence

---

Definitions:

Hate Crime

A crime committed against someone based on their race, religion, ethnicity, sexual orientation, or other such characteristic.

Crime Statistics

Data collected and analyzed regarding the incidence, frequency, and types of crimes committed in a specific area or globally.

Social Learning

A theory that suggests individuals learn behaviors, norms, and values by observing and imitating others.

Peer Groups

Social groups consisting of individuals of similar age, status, interest, or backgrounds who tend to influence each other's attitudes and behaviors.