In the economic order quantity model,ordering at the economic order quantity level implies that ______.
A)the total ordering and holding costs are equal
B)the total ordering costs are higher than the total holding costs
C)the total ordering costs are lower than the total holding costs
D)the total ordering costs are not equal to the total holding costs

Question

Quizplus · Accepted Answer

Ordering at the economic order quantity level implies that the total ordering and holding costs are equal, which minimizes the total inventory costs.

In the Economic Order Quantity Model,ordering at the Economic Order