Question: When will the order sizes recommended by the economic order quantity (EOQ) formula and the economic production quantity (EPQ) formula be very similar to each

When will the order sizes recommended by the economic order quantity (EOQ) formula and the economic production quantity (EPQ) formula be very similar to each other, when used to plan the same item?

I. When the fixed ordering cost is very high relative to the per unit holding cost.

II. When the daily production rate is many times faster than the daily demand rate.

III. When annual demand for the item being ordered is very high.

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