EOQ helps you think in terms of
A)buying and selling.
B)ordering costs and carrying costs.
C)borrowing cost and kiting costs.
D)ordering cost and lost sales.

Question

Quizplus · Accepted Answer

EOQ, or Economic Order Quantity, is a method used to determine the optimal ordering quantity of inventory that minimizes the total cost of ordering and holding inventory. Therefore, EOQ helps you think in terms of ordering costs (the cost of placing an order for inventory) and carrying costs (the cost of holding inventory in stock), as these are the two primary costs associated with inventory management.

EOQ Helps You Think in Terms of