A manager uses the inventory control method 'Economic Order Quality' (EOQ) to help him/her:

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is designed to help find the optimal order quantity that minimizes the total inventory costs, which include ordering costs (costs associated with placing an order) and holding costs (costs associated with holding or storing inventory). While EOQ helps in determining the most cost-effective quantity to order, indirectly it also aids in avoiding stock-outs by ensuring a systematic approach to reordering, thus making option D correct as it encompasses all the given benefits.

A Manager Uses the Inventory Control Method 'Economic Order Quality