One of the major inventory costs for EOQ modeling is
A)rented storage space.
B)labor.
C)maintenance.
D)ordering.
E)pilferage.

Question

Quizplus · Accepted Answer

EOQ modeling focuses on determining the optimal order quantity that minimizes inventory costs. One of the major inventory costs in EOQ modeling is the cost of placing orders, known as ordering costs. These costs include administrative expenses, communication expenses, and transportation costs. Hence, option D, ordering, is the correct choice. Other costs such as rented storage space, labor, maintenance, and pilferage are also relevant to inventory management but are not considered the major costs in EOQ modeling.

One of the Major Inventory Costs for EOQ Modeling Is