In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.

Name: In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.
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Question

Quizplus · Accepted Answer

In the Economic Order Quantity (EOQ) model, the optimal order quantity is achieved when the total ordering costs equal the total inventory holding costs, minimizing the total inventory costs.

In General, Total Ordering Costs Are Equal to Total Inventory