The Economic Order Quantity (EOQ)

question 21

Multiple Choice

The Economic Order Quantity (EOQ) :

• A) Is used to calculate how much safety stock should be carried
• B) Will depend on how many related parts are required in the same period
• C) Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock
• D) Should be calculated once a year
• E) Is a formula that calculates a realistic purchase price for an item

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