The economic order quantity (EOQ) is the order quantity which minimizes ________.
A) the order cost per order
B) the total inventory costs
C) the carrying costs per unit per period
D) order quantity in units

Question

Quizplus · Accepted Answer

The primary objective of using EOQ is to minimize the total inventory costs, which includes both ordering costs and carrying costs. Therefore, the order quantity that minimizes these costs is the EOQ.

The Economic Order Quantity (EOQ) Is the Order Quantity Which