The economic order quantity model is used to
A)set the target cost.
B)set the target profit.
C)set the target sales price.
D)derive the optimal number of orders or production runs.

Question

Quizplus · Accepted Answer

The economic order quantity model is used to determine the optimal number of orders or production runs that minimize inventory holding costs and ordering costs. Therefore, the best choice is D.

The Economic Order Quantity Model Is Used to