If the Actual Order Quantity Is the Economic Order Quantity

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* =

A) is smaller than the holding cost per unit.
B) is zero.
C) is one-half of the economic order quantity.
D) goes down if the setup cost per order goes up.
E) goes down if the holding cost per unit goes down.