Question: If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below,

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand: Q* =

Question 47 options:

1)

is smaller than the holding cost per unit.

2)

is zero.

3)

is one-half of the economic order quantity.

4)

goes down if the setup cost per order goes up.

5)

goes down if the holding cost per unit goes down.

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