The period order quantity is equal to:
A) Annual demand divided by EOQ.
B) EOQ divided by average period demand.
C) The carrying cost up to but not exceeding the ordering cost.
D) The sum of the carrying costs divided by cost per unit.
E) The part period cost times average inventory.

Question

Quizplus · Accepted Answer

The period order quantity is the order quantity that is placed at regular intervals over a given period of time. It is calculated by dividing the EOQ by the average period demand. This ensures that inventory costs are minimized while still meeting demand over the period of time. Therefore, B is the correct answer.

The Period Order Quantity Is Equal To