At the Optimal Order Quantity (EOQ),the Total Annual Inventory Cost

question 21

Multiple Choice

At the optimal order quantity (EOQ) ,the total annual inventory cost (TC) is given by ______.

• A)TC = (Annual demand/EOQ)× Ordering cost per order/2 + (EOQ)× Holding cost per unit per year
• B)TC = (Annual demand/EOQ)× Ordering cost per order + (EOQ/2)× Holding cost per unit per year
• C)TC = (Annual demand/EOQ)× Ordering cost per order/2 + (EOQ/2)× Holding cost per unit per year
• D)TC = (Annual Demand/EOQ)× Ordering cost per order + (EOQ)× Holding cost per unit per year

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