What is the term that describes the optimal number units to order or produce to achieve the optimal trade-off between setup (or order)costs and carrying costs?
A)total quality management.
B)flexible manufacturing practices.
C)just-in-time inventory.
D)the economic order quantity.

Question

Quizplus · Accepted Answer

The term that describes the optimal number of units to order or produce to achieve the optimal trade-off between setup (or order) costs and carrying costs is the economic order quantity. This is a well-established concept in inventory management and helps organizations to minimize total inventory costs while ensuring that they have a sufficient level of inventory to meet customer demand. Total Quality Management (A) and Flexible Manufacturing Practices (B) are related concepts that focus on improving quality and flexibility in manufacturing processes, while Just-in-Time Inventory (C) is an inventory management approach that seeks to minimize inventory levels by only ordering or producing items as they are needed.

What Is the Term That Describes the Optimal Number Units