_____ is determined by the point at which ordering costs equal carrying costs,or where total cost (ordering costs plus carrying costs)is at a minimum.
A) Demand order forecast
B) Economic order quantity
C) Break even point order
D) Just-in-time order schedule
E) Variable order expense

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is the optimal order quantity that minimizes the total cost of ordering and carrying inventory. It is determined by finding the point where the ordering costs equal the carrying costs. This helps businesses to maintain an adequate level of inventory without incurring excessive carrying costs or frequent ordering costs.

_____ Is Determined by the Point at Which Ordering Costs