In the EOQ model with quantity discounts,with holding cost stated as a percentage of unit purchase price,in order for the EOQ of the lowest curve to be optimum,it must:
A)have the lowest total cost
B)be in a feasible range
C)be to the left of the pricebreak quantity for that price
D)have the largest quantity compared to other EOQs
E)None of the above

Question

In the EOQ model with quantity discounts,with holding cost stated as a percentage of unit purchase price,in order for the EOQ of the lowest curve to be optimum,it must:
A)have the lowest total cost 
B)be in a feasible range 
C)be to the left of the pricebreak quantity for that price 
D)have the largest quantity compared to other EOQs 
E)None of the above

Quizplus · Accepted Answer

For the EOQ of the lowest curve to be optimum, it must be in a feasible range, meaning it should be within the quantity range where the discount applies.

In the EOQ Model with Quantity Discounts,with Holding Cost Stated