Exam Question
Which of the following is a true statement concerning the relationship between holding costs and ordering costs in the basic EOQ Model?
- 1) The two are always equal at EOQ
- 2) Holding cost is sometimes equal to ordering cost and sometimes greater at EOQ
- 3) Holding cost is sometimes equal to ordering cost and sometimes less at EOQ
- 4) Holding cost is always greater than ordering cost at EOQ
View Answer
Answer 3) Holding cost is sometimes equal to ordering cost and sometimes less at EOQ
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