The optimal order quantity for the EOQ model is found where the annual ordering and carrying costs are equal.

Question

Quizplus · Accepted Answer

The EOQ model is designed to find the optimal order quantity, which minimizes the total cost of inventory management. This includes both ordering and carrying costs. The optimal order quantity is found where the annual ordering and carrying costs are equal, which helps to balance the costs associated with ordering too frequently or holding too much inventory.

The Optimal Order Quantity for the EOQ Model Is Found