Question: A general property of the EOQ inventory model is that total inventory holding and total ordering costs are equal at the optimal solution. Use the

A general property of the EOQ inventory model is that total inventory holding and total ordering costs are equal at the optimal solution. Use the data in Problem 1 to show that this result is true. Use equations (1), (2), and (3) to show that, in general, total holding costs and total ordering costs are equal whenever Q* isused.

A general property of the EOQ inventory model is that

Ch-IC 1) Annual Average Annual holding holding cost inventory cost per unt 2) Annual Nmber ofCost per ordering costper year 3)

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