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

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

Quizplus · Accepted Answer

The Answer of 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

If the Actual Order Quantity Is the Economic Order Quantity