Which one of the following best defines the economic order quantity (EOQ)?
A)minimum size of an order needed to qualify for free shipping
B)restocking quantity that minimises the total cost of inventory
C)number of items that are sold on average each month
D)minimal amount of inventory that must be purchased to receive a cash discount
E)minimum amount that must be ordered to obtain the quantity discount

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) is the restocking quantity that minimizes the total cost of inventory, balancing the costs of ordering and holding inventory.

Which One of the Following Best Defines the Economic Order