The economic order quantity model derives the optimal number of which of the following costs?
A)fixed and variable costs.
B)orders or production runs.
C)direct materials and direct labor.
D)direct materials and conversion costs.

Question

Quizplus · Accepted Answer

The economic order quantity model determines the optimal number of orders or production runs to minimize total inventory costs, such as ordering costs and holding costs. It does not address fixed and variable costs, direct materials and direct labor, or conversion costs specifically.

The Economic Order Quantity Model Derives the Optimal Number of Which