In the basic EOQ model,at the optimal order quantity annual holding cost is equal to the annual ordering cost.

Name: In the basic EOQ model,at the optimal order quantity annual holding cost is equal to the annual ordering cost.
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Quizplus · Accepted Answer

This is true. In the basic EOQ (economic order quantity) model, the optimal order quantity is determined such that the annual holding cost (cost of holding inventory) is equal to the annual ordering cost (cost of placing an order), leading to the lowest total cost of inventory.

In the Basic EOQ Model,at the Optimal Order Quantity Annual