The average inventory level in the EOQ model is?

Name: The average inventory level in the EOQ model is?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In the EOQ model, the average inventory level is equal to the order quantity (Q) divided by 2. This makes sense as the inventory level starts at 0, increases to the order quantity when an order is placed, and decreases back to 0 when the inventory is completely depleted. Therefore, the average inventory level over time is half of the order quantity.

The Average Inventory Level in the EOQ Model Is