Figure 7-1
Use the graph below to answer the question(s).
-Which of the following is TRUE in relation to Figure 7-1?
A)Curve J represents the annual ordering cost,and curve K represents the annual holding cost.
B)A lot size of G has an annual total cost of about C.
C)At lot size H both holding costs and ordering costs exceed the annual total cost.
D)The EOQ is most likely lot size G,and curve L is the annual ordering cost curve.

Question

Figure 7-1
Use the graph below to answer the question(s). 
-Which of the following is TRUE in relation to Figure 7-1?
A)Curve J represents the annual ordering cost,and curve K represents the annual holding cost. 
B)A lot size of G has an annual total cost of about C. 
C)At lot size H both holding costs and ordering costs exceed the annual total cost. 
D)The EOQ is most likely lot size G,and curve L is the annual ordering cost curve.

Quizplus · Accepted Answer

The Answer of Figure 7-1
Use the graph below to answer the question(s). 
-Which of the following is TRUE in relation to Figure 7-1?
A)Curve J represents the annual ordering cost,and curve K represents the annual holding cost. 
B)A lot size of G has an annual total cost of about C. 
C)At lot size H both holding costs and ordering costs exceed the annual total cost. 
D)The EOQ is most likely lot size G,and curve L is the annual ordering cost curve.

Figure 7-1 Use the Graph Below to Answer the Question(s)