A model of inventory management that identifies the optimum number of items to order to minimize the costs of managing them is called the:
A)just-in-time management model.
B)flexible scheduling model.
C)cost-plus model.
D)economic order quantity model.
E)value chain model.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is designed to help businesses minimize the total cost of inventory management by determining the most cost-effective quantity of an item to order. This includes balancing ordering costs and holding costs to find the optimal order size.

A Model of Inventory Management That Identifies the Optimum Number