Question

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) is affected by the amount of product cost.

E) goes down if the holding cost per unit goes down.

Answer

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