Which of These Statements About EOQ Is Best

Multiple Choice

Which of these statements about EOQ is best?

A) Under the assumptions made to develop the EOQ model, average inventory is one-half of the maximum inventory.
B) The EOQ model is very sensitive to minor violations of the basic assumptions.
C) The economic order quantity helps one estimate the cost of holding inventory.
D) An increase in holding cost will increase the economic order quantity, holding all other factors constant.