The purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cost of stockouts.

Name: The purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cost of stockouts.
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Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) model aims to minimize the total cost of ordering and holding inventory, not specifically to balance the cost of holding inventory with the cost of stockouts.

The Purpose of the EOQ Model Is to Achieve a Balance