What does the point of intersection between the ordering cost curve and the carrying cost curve represent in the Economic Order Quantity $($EOQ$)$ model?

What does the point of intersection between the ordering cost curve and the carrying cost curve represent in the Economic Order Quantity $($EOQ$)$ model?

The point where the total inventory costs are highest due to the balance between ordering and holding costs.

The point where carrying costs exceed ordering costs, leading to an increased number of orders placed annually.

The point where total demand is met and no further orders are required for the remainder of the year.

The point where the total inventory costs are minimized, indicating the optimal order quantity for the lowest overall cost.