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

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) EOQ3000 We cannot make any determination with the given information

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