The most cost effective quantity of a material to purchase is calculated by which method?
A) Reorder point model
B) Economic Order model
C) Fixed order period model
D) Lot for Lot model

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is specifically designed to calculate the most cost-effective quantity of a material to purchase, balancing ordering costs and holding costs to minimize total inventory costs.

The Most Cost Effective Quantity of a Material to Purchase