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    Statistics
  3. Study Set
    Production and Operations Management
  4. Exam
    Exam 14: Inventory Management for Smooth and Continuous Demand Patterns
  5. Question
    The Maximum Total Variable Cost Always Occurs at the Cross
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The Maximum Total Variable Cost Always Occurs at the Cross

Question 107

Question 107

True/False

The maximum total variable cost always occurs at the cross point of Lines A and B,
e.g.,as shown in Figure 14-3.Line A is the variable carrying cost as a function of ordering quantity,Q.Line B is the variable ordering cost as a function of Q.

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