The annual relevant total costs are at a minimum when relevant ________.
A) ordering costs are greater than the relevant carrying costs
B) carrying costs are greater than the relevant ordering costs
C) carrying costs are equal to relevant ordering costs
D) carrying costs are equal to relevant purchasing costs

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model states that total costs are minimized when ordering costs equal carrying costs.

The Annual Relevant Total Costs Are at a Minimum When