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Discuss the Concept of the Economic Order Quantity

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Essay

Discuss the concept of the economic order quantity.What is its value to the small business owner and what are the three principal elements needed to calculate it?


Definitions:

Denominated

Specified or expressed in terms of a particular currency or unit of measurement.

Speculate

To engage in a financial transaction with a high risk of losing value but also the potential for substantial gains.

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

Foreign Currency

Money or other forms of payment used in international trade that are issued by foreign governments.

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