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In the Economic Order Quantity (EOQ) model, one of the key characteristics of ordering cost is that it is constant and known. This means that the cost incurred every time an order is placed does not vary with the quantity of the order or the frequency of ordering within the model’s assumptions. This constancy simplifies the calculation of total inventory costs, allowing businesses to effectively analyze when to reorder and how much to order to minimize total costs.

Ordering costs typically include expenses such as shipping, handling, and payment processing, which do not change based on the order size but rather remain the same for each order placed. This characteristic is crucial for businesses as it helps in establishing a straightforward relationship between order quantity and total inventory costs, facilitating better inventory management and decision-making.

Understanding that ordering costs are constant aids in comprehending the interplay between ordering costs and holding costs in the EOQ model, allowing firms to determine an optimal order quantity that minimizes the total cost associated with inventory management.