With reference to the Economic Order Quantity (EOQ) model, which one of the options given is correct?

Options :

1. Curve P1: Total cost, Curve P2: Holding cost,

   Curve P3: Setup cost, and Curve P4: Production cost.

2. Curve P1: Total cost, Curve P2: Holding cost,

   Curve P3: Setup cost, and Curve P4: Production cost.

3. Curve P1: Production cost, Curve P2: Holding cost,

   Curve P3: Total cost, and Curve P4: Setup cost.

4. Curve P1: Total cost, Curve P2: Production cost,

   Curve P3: Holding cost, and Curve P4: Setup cost.