The "economic ordering quantity" helps a firm determine the most efficient order size to place.

Question

Quizplus · Accepted Answer

The economic ordering quantity (EOQ) is a formula used to determine the optimal order size for a company to minimize costs related to ordering and holding inventory. By calculating the EOQ, a firm can identify the order quantity that will result in the lowest total inventory costs. Therefore, the statement is true.

The "Economic Ordering Quantity" Helps a Firm Determine the Most