If the Actual Order Quantity Is the Economic Order Quantity $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

Multiple Choice

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* = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

A) is smaller than 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) goes down if the holding cost per unit goes down