What order quantity is used in the EOQ model?
A)the quantity of inventory ordered during one year
B)the quantity of inventory ordered for one job
C)the quantity of inventory ordered for one department
D)the quantity of inventory ordered at one time

Question

Quizplus · Accepted Answer

The order quantity used in the EOQ model refers to the amount of inventory ordered at one time. This is because the EOQ model calculates the optimal order quantity that minimizes total inventory costs, including ordering costs and holding costs, for a given demand and lead time. Therefore, the order quantity must be a specific quantity that can be ordered at once. Options A, B, and C refer to different units of measurement and are not directly relevant to the EOQ model.

What Order Quantity Is Used in the EOQ Model