The optimal order quantity as determined by the EOQ occurs when ________.
A) ordering costs equal carrying costs
B) ordering costs are exactly 1/2 of carrying costs
C) ordering costs are exactly twice as much as carrying costs
D) None of the answers provided are accurate

Question

Quizplus · Accepted Answer

The EOQ formula balances the ordering costs and carrying costs, so the optimal order quantity occurs when these two costs are equal. Therefore, the answer is A.

The Optimal Order Quantity as Determined by the EOQ Occurs