Which One of the Following Best Defines the Economic Order

question 25

Multiple Choice

Which one of the following best defines the economic order quantity (EOQ) ?

• A)minimum size of an order needed to qualify for free shipping
• B)restocking quantity that minimises the total cost of inventory
• C)number of items that are sold on average each month
• D)minimal amount of inventory that must be purchased to receive a cash discount
• E)minimum amount that must be ordered to obtain the quantity discount

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Definitions:

Four-drive Theory

A theory positing that human behavior is driven by four fundamental needs or drives: the drive to acquire, bond, learn, and defend.

Reactive

A response or behavior that occurs as a result of external stimuli, rather than initiating action proactively.

Proactive

An approach characterized by taking initiative and anticipatory actions to influence an outcome, rather than reacting to events after they occur.

McClelland's Learned Needs Theory

A psychological theory suggesting that individuals are motivated by three primary needs: achievement, affiliation, and power, which they learn over time.