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* = √(2∙D∙S)/H
a. is smaller the smaller is the holding cost per unit
b. is zero
c. is one-half of the economic order quantity
d. is affected by the amount of product cost
e. All of the above are true.
Answer: C