Which of the following statements is true of Allianz's EOQ system costs?
A) At EOQ, the annual relevant ordering costs is exactly the half of annual relevant carrying costs.
B) At EOQ, the annual relevant carrying costs is higher than the annual relevant ordering costs.
C) At EOQ, the annual relevant carrying costs is exactly the half of the annual relevant total costs.
D) At EOQ, the annual relevant carrying costs is equal to the annual relevant total costs.

Question

Quizplus · Accepted Answer

At EOQ (Economic Order Quantity), the annual relevant carrying costs are equal to the annual relevant ordering costs, and each is half of the total relevant costs.

Which of the Following Statements Is True of Allianz's EOQ