Use of the economic order quantity
A)determines the reorder point.
B)provides the lowest overall inventory costs.
C)determines the safety stock.
D)All of the options

Question

Quizplus · Accepted Answer

The economic order quantity provides the lowest overall inventory costs by balancing ordering costs and holding costs. While it can be used to determine the reorder point and safety stock, its primary purpose is to minimize total inventory costs.

Use of the Economic Order Quantity