A company that embroiders t-shirts, uses 15,000 plain t-shirts annually. The optimal order quantity is 500 shirts. The company embroiders approximately 150 shirts daily. Using the ____________ calculations, the company knows it should place an order approximately every 3 days.
A) materials requirement planning
B) just-in-time inventory management
C) break-even
D) economic order quantity
E) independent demand
Calculations, the company knows it should

Question

Quizplus · Accepted Answer

EOQ is a system of formulas that minimize ordering and holding costs and help determine how much and how often inventory should be ordered.

A Company That Embroiders T-Shirts, Uses 15,000 Plain T-Shirts Annually