The __________ method places new orders when inventory levels fall to predetermined points.
A) master level
B) economic order quantity
C) purchasing control level
D) financial minimum level

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) method is used to determine the optimal order size that minimizes the total inventory costs, including ordering and holding costs. It places new orders when inventory levels fall to predetermined points to maintain an optimal balance.

The __________ Method Places New Orders When Inventory Levels Fall