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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 StartRoot StartFraction DS Over Upper H EndFraction EndRoot
Part
A
is smaller than the holding cost per unit.
B
is zero.
C
goes down if the holding cost per unit goes down.
D
goes down if the setup cost per order goes up
E
is onehalf of the economic order quantity.
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