EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand.

Name: EOQ should be used if you follow a make-to-stock strategy and the item has relatively stable demand.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

EOQ (economic order quantity) is most appropriate for businesses that operate on a make-to-stock basis and have a steady demand for their goods. EOQ is not the best option for businesses that follow a make-to-order strategy or have highly variable demand for their products.

EOQ Should Be Used If You Follow a Make-To-Stock Strategy