Mathematics · Inventory Management
On a standard inventory cost graph, where the total holding cost curve and total ordering cost curve intersect, the total inventory cost is minimized. At which point on this total cost graph do you read off the value for the Economic Order Quantity (EOQ)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1At the point of highest holding cost
- 2At the point of zero ordering cost
- 3At the intersection point of the holding cost and ordering cost curves✓
- 4At the highest point of the total cost curve
Correct answer
At the intersection point of the holding cost and ordering cost curves
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