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.

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) goes down if the setup cost per order goes up. 
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) goes down if the setup cost per order goes up. 
E) goes down if the holding cost per unit goes down.

If the Actual Order Quantity Is the Economic Order Quantity