The Economic Order Quantity (EOQ) Is Calculated Using

question 18

Multiple Choice

The economic order quantity (EOQ) is calculated using:

• A) Q = √[(2 × sales × cost per order)/(carrying cost)]
• B) Q = √[(2 × sales × carrying cost)/(cost per order)]
• C) Q = √(2 × sales × cost per order × carrying cost)
• D) none of the above

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Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Line Structure

The simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.