₉₂_._A_compan_y_tha_t_embroider_s_t-shirts_,_use_s_15,00₀_plai_n_t-shirt_s_annually_._Th_e_optima_l_orde_r_quantit_y_i_s₅₀₀_shirts_._The company embroiders approximately 150 shirts daily. Using the 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_._independen_t_demand Calculations, the company knows it should

Question

Quizplus · Accepted Answer

The best choice for the given scenario is economic order quantity (EOQ). EOQ helps in determining the optimal quantity of inventory to be ordered at a given time, considering the trade-off between ordering costs and carrying costs. Since the company places an order approximately every 3 days and embroiders approximately 150 shirts daily, the EOQ can be calculated to ensure that the ordering cost and carrying costs are minimized. This will help in reducing inventory costs and ensuring timely availability of inventory.

92

₉₂