Tyree is concerned about minimizing ordering and holding costs without running out of stock.Tyree is primarily interested in calculating __________.
A)Materials requirement planning (MRP)
B)Economic order quantity (EOQ)
C)Enterprise resource planning (ERP)
D)Supply chain management (SCM)

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is a model used to calculate the optimal quantity of inventory to order at any given time in order to minimize ordering and holding costs while avoiding stockouts. This is exactly what Tyree is concerned about, making EOQ the best choice for him to calculate. The other options (MRP, ERP, SCM) are broader concepts that may include elements related to inventory management, but they are not specifically focused on minimizing ordering and holding costs.

Tyree Is Concerned About Minimizing Ordering and Holding Costs Without