Question

when using the economic order quantity modelmultiple choiceordering costs increase as the level of inventory increases.carrying costs decrease as the level of inventory increases.costs are minimized when total carrying costs and total ordering costs are equal.none of the options are true.

Answer 1

Answer:

costs are minimized when total carrying costs and total ordering costs are equal.

Explanation:

An economic order quantity model can be defined as an ideal order quantity that typically minimizes or reduces the overall ordering cost, shortage cost and holding cost of an asset.

When using the economic order quantity model costs are minimized when total carrying costs and total ordering costs are equal.