In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must
A)have the lowest total cost.
B)be in a feasible range.
C)be to the left of the price break quantity for that price.
D)have the largest quantity compared to other EOQs.
E)have smaller ordering costs than the others.

Question

Quizplus · Accepted Answer

For the EOQ of the lowest curve to be optimum in a quantity discount model, it must be in a feasible range, meaning it should fall within the range of quantities where the discount applies.

In the Quantity Discount Model, with Carrying Cost Stated as a Percentage