The economic order quantity (EOQ) determines ____.
A) the point at which a company should reorder
B) the point at which carrying costs equal ordering costs
C) the point at which the sum of carrying costs and ordering costs is maximized
D) the relevant inventory flow for a particular time period
E) none of the above

Question

Quizplus · Accepted Answer

The EOQ model is used to find the optimal order quantity that minimizes the total cost of inventory, which occurs when carrying costs equal ordering costs.

The Economic Order Quantity (EOQ) Determines ____