At the economic order quantity,

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is the optimal order quantity that minimizes the total cost of ordering and holding inventory. At the EOQ, the annual ordering cost and annual holding cost for an item are equal. Therefore, option B is the correct choice. Options A and C are incorrect because they suggest that one of the costs is higher than the other at the EOQ, which is not true. Option D is also incorrect as one of the answers must be correct.

At the Economic Order Quantity