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* =
A) is smaller than the holding cost per unit.
B) is zero.
C) is one-half of the economic order quantity.
D) goes down if the setup cost per order goes up.
E) goes down if the holding cost per unit goes down.
C
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Answer the following statement true (T) or false (F)
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