The Economic Order Quantity Method of Inventory Management Identifies the Optimal

The economic order quantity method of inventory management identifies the optimal inventory level by:

A) Subdividing the inventory into three categories based on item cost.
B) Computing the cost of the inventory sold on an average day.
C) Determining exactly the amount of inventory needed on a given day.
D) Equating the cost of inventory with the monthly average cost of goods sold.
E) Equating inventory restocking costs with the costs of carrying inventory.