If the Actual Order Quantity Is the Economic Order Quantity $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

question 57

Multiple Choice

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand Q* = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

• A) is smaller than the holding cost per unit
• B) is zero
• C) is one-half of the economic order quantity
• D) is affected by the amount of product cost
• E) goes down if the holding cost per unit goes down

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