The economic order quantity
A) determines the reorder point.
B) provides the lowest inventory costs.
C) determines the safety stock.
D) all of these.

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) provides the lowest inventory costs by finding the optimal order quantity that balances the costs of holding inventory and ordering inventory. However, it does not determine the reorder point or safety stock, which are separate inventory management decisions.

The Economic Order Quantity