Question $2$

$2$ pts

Consider an inventory system model where the annual ordering cost is $$70,000$ per year, and the total annual holding cost is $$60,000$ per year. Suppose the company currently uses a consistent order size of $5000$ units at a time $($based on the executive's discussions with the supplier$).$ Which one of the following statements is true about the optimal order quantity $)?$

EOQ$>5000$

EOQ$=5000$

EOQ$<mn\; id="EditorElement\_1995008">5</mn><mn\; id="EditorElement\_1995009">0</mn><mn\; id="EditorElement\_1995010">0</mn><mn\; id="EditorElement\_1995011">0</mn>$