Economic order quantity refers to the order size that
A)minimizes the size of the order.
B)minimizes the carrying costs associated with inventory.
C)minimizes total inventory costs.
D)minimizes the ordering costs associated with inventory.

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is a formula used in inventory management to calculate the optimal order size that minimizes total inventory costs, which includes both ordering costs and carrying costs. Therefore, the answer is C.

Economic Order Quantity Refers to the Order Size That