In the Quantity Discount Model, with Carrying Cost Stated as a Percentage

question 89

Multiple Choice

In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must

• A)have the lowest total cost.
• B)be in a feasible range.
• C)be to the left of the price break quantity for that price.
• D)have the largest quantity compared to other EOQs.
• E)have smaller ordering costs than the others.

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