Using the EOQ model, a manager can determine _____________. This allows the ﬁrm to place orders before inventories reach a critical level, allowing for suﬃcient delivery time.

Question

Quizplus · Accepted Answer

The EOQ model allows a manager to determine the optimal order quantity to minimize total inventory costs, and also calculates the reorder point, which is the inventory level at which a new order should be placed to avoid stockouts. Therefore, D is the correct choice as it directly relates to the benefits of using the EOQ model.

Using the EOQ Model, a Manager Can Determine _____________