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Which of the Following Best Explains 'Economic Order Quantity (EOQ)

Question 38

Multiple Choice

Which of the following best explains 'economic order quantity (EOQ) '? 


A)  Where the inventory costs per unit is lowest. 
B)  Where the sum of inventory costs and ordering costs per unit is lowest. 
C)  Where the ordering costs per unit is lowest. 
D)  Where inventory costs minus ordering costs per unit is lowest.

Correct Answer:

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