In the EOQ model the optimal ordering quantity is the quantity for which the sum of the costs of ordering and carrying inventory is minimized.

Question

Quizplus · Accepted Answer

In the EOQ model, the optimal ordering quantity is the quantity at which the sum of the ordering cost and inventory holding cost is the lowest. This is achieved when the total cost function is minimized. Therefore, statement A is true.

In the EOQ Model the Optimal Ordering Quantity Is the Quantity