The goal of the basic EOQ model is to:
A)Minimize order size.
B)Minimize order cost.
C)Minimize holding cost.
D)Minimize the sum of purchasing and ordering costs.
E)Minimize the sum of ordering and holding costs.

Question

Quizplus · Accepted Answer

The EOQ model aims to minimize the total cost of inventory management, which is the sum of ordering costs and holding costs. Therefore, the best choice is E which suggests minimizing the sum of ordering and holding costs.

The Goal of the Basic EOQ Model Is To