What Is the Economic Order Quantity (EOQ)

question 16

Multiple Choice

What is the Economic Order Quantity (EOQ) ?

• A) The amount that should be ordered to minimize the cost of holding the inventory and the cost of ordering.
• B) The inventory reorder level that minimizes the total costs of inventory.
• C) The period of time between orders in days, months and/or quarters, to reduce the inventory holding and ordering costs.
• D) The total inventory cost considering the value of the purchase, order costs, warehousing costs, and labour costs.
• E) The cost of an individual order considering the value of the purchase, order costs, warehousing costs, and labour costs.

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