When graphing the EOQ, which of the following statements is false?
A) Holding costs are a downward sloping line to the right.
B) The EOQ is represented by the minimum total cost.
C) Ordering costs are a downward sloping line to the right.
D) Average inventory on hand results in higher holding costs.
E) As order size increases, so does average inventory on hand.

Question

Quizplus · Accepted Answer

Holding costs are typically an upward sloping line to the right, not downward, as they increase with larger inventory levels.

When Graphing the EOQ, Which of the Following Statements Is