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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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