Question: The Economic Order Quantity ( EOQ ) is a fixed - order quantity model where the inventory is continuously monitored and as soon as the

The Economic Order Quantity (EOQ) is a fixed-order quantity model where the inventory is continuously monitored and as soon as the inventory drops to level R (or below), an order for Q units is placed on the supplier. In addition to the per-unit costs (C), a fixed order cost (S) is charged for the order regardless of the size of the order. The order arrives after a lead time L.
The decision in the EOQ is "Q" and is determined as a trade-off between two costs. Choose the two relevant costs from the following list:
Group of answer choices
annual purchase cost
ordering cost
stockout cost
holding cost

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