The economic order quantity (EOQ) is the quantity that
A) minimizes total ordering cost.
B) maximizes total profit.
C) minimizes total inventory-related costs.
D) maximizes carrying costs.
E) maximizes ease of ordering.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is designed to minimize total inventory-related costs, which include both ordering costs (such as purchase orders and delivery) and carrying costs (such as storage, insurance, and taxes).

The Economic Order Quantity (EOQ) Is the Quantity That