The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs.

Question

Quizplus · Accepted Answer

EOQ model is designed to determine the optimal order quantity that minimizes the total annual inventory costs. It considers the ordering costs and holding costs to find out the most economical order size for a specific product. Hence, the given statement is True.

The Economic Order Quantity Model (EOQ) Is the Optimal Independent