The___________ of a specific raw material is the optimal quantity that allows a business to minimize overstocking and save cost,without risking understocking and missing production deadlines.
A)targeted market list (TML)
B)bill of materials (BOM)
C)economic order quantity (EOQ)
D)convenient order quantity (COQ)

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is a commonly used inventory management technique that calculates the ideal order quantity to minimize inventory holding costs and ordering costs. EOQ considers factors such as demand, lead time, ordering costs, and holding costs to find the most cost-effective order quantity.

The___________ of a Specific Raw Material Is the Optimal Quantity