Which of the following terms describes the optimal number of units to order or produce?
A)economic order quantity.
B)effective order quantity.
C)efficient order quantity.
D)elastic order quantity.

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is the optimal number of units to order or produce that minimizes the combined costs of ordering and holding inventory. It takes into account factors such as the cost of placing an order, the cost of holding inventory, and the demand for the product.

Which of the Following Terms Describes the Optimal Number of Units