Question: Consider an inventory system model where the management has arbitrarily set a current order size of 3000 units. They have found that, for this, the

Consider an inventory system model where the management has arbitrarily set a current order size of 3000 units. They have found that, for this, the annual ordering cost is $ 80,000 per year, and the total annual holding cost is $40,000 per year. Suppose Which one of the following statements is true about the optimal order quantity (EOQ)? (Hint: Use the Economic Lot Size model illustrating the total cost and cost variation per unit time)

Group of answer choices

EOQ < 3000

EOQ = 3000

EOQ > 3000

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