Which of the following identifies the goal of managers who use the economic order quantity (EOQ)model?
A)minimizing carrying costs and ordering costs
B)maximizing carrying costs and ordering costs
C)maximizing carrying costs and minimizing ordering costs
D)maximizing carrying costs and total costs

Question

Quizplus · Accepted Answer

The goal of managers who use the economic order quantity (EOQ) model is to minimize the total cost of inventory management by finding the optimal order quantity that minimizes the sum of carrying costs (holding cost of inventory) and ordering costs (cost of placing an order). Maximizing carrying costs and/or ordering costs would not be in line with this goal, and maximizing total costs would be counterproductive.

Which of the Following Identifies the Goal of Managers Who