The economic order quantity is the order quantity that results in
A) the minimum total annual inventory costs.
B) the maximum total annual inventory costs.
C) no inventory shortages.
D) minimum ordering costs.

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) is calculated as the point where the inventory holding costs and ordering costs are minimized, resulting in the minimum total annual inventory costs. Therefore, option A is the correct answer.

The Economic Order Quantity Is the Order Quantity That Results