If the Variables in the EOQ Inventory Model Are Defined

question 90

Multiple Choice

If the variables in the EOQ inventory model are defined as: S = total units demanded during the planning period,O = ordering costs per order,C = carrying costs per unit and Q = inventory order size in units,then the average level of inventory which a company should have during the planning period is

• A) 2/3 Q.
• B) 1/2 Q.
• C) SO/C.
• D) 1/2 S.

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