Economic order quantity (EOQ) is best applied when the:

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is a formula used to calculate the optimal quantity of goods to order based on the costs of ordering and holding inventory. It is mainly used for products with a uniform demand rate, as the formula assumes a constant consumption rate. Therefore, the best choice is D, when the consumption rate is uniform. None of the other options are necessarily good fits for EOQ.

Economic Order Quantity (EOQ) Is Best Applied When The