The economic order quantity is the amount to order that minimizes the total cost of ordering and holding.

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) formula is designed to find the optimal quantity of inventory to order that minimizes the total cost of ordering and holding inventory, taking into account factors such as ordering costs, carrying costs, and demand variability. Therefore, the statement is true.

The Economic Order Quantity Is the Amount to Order That