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 2DS/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.
Answer: C