If the Actual Order Quantity Is the Economic Order Quantity

question 147

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* =

• A)is smaller than the holding cost per unit.
• B)is zero.
• C)is one-half of the economic order quantity.
• D)goes down if the setup cost per order goes up.
• E)goes down if the holding cost per unit goes down.

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