__________ is one popular technique designed to minimize the total holding costs and ordering costs for inventory items.
A) Dependent demand inventory
B) Economic order quantity
C) Materials requirement planning
D) Manufacturing resource planning
E) Independent order quantity

Question

Quizplus · Accepted Answer

Economic order quantity is specifically designed to find the optimal order size that minimizes both holding costs and ordering costs. It takes into account factors such as demand, ordering costs, and holding costs to determine how much inventory should be ordered at a time. The other options listed are inventory management techniques, but they do not specifically address both holding costs and ordering costs in the same way that economic order quantity does.

__________ Is One Popular Technique Designed to Minimize the Total