______ is a model that a firm's management can use to determine the amount of inventory that should be ordered and carried to minimize its total inventory costs.

Question

Quizplus · Accepted Answer

The economic ordering quantity (EOQ) model is a widely used inventory optimization model that helps a firm's management to calculate the most efficient amount of inventory to order and carry to minimize its total inventory costs. This model considers factors such as ordering costs, carrying costs, and inventory holding costs to determine the optimal order quantity that achieves the lowest total cost of inventory management. Therefore, option A is the correct choice. The other options are either irrelevant or do not relate to inventory management.

______ Is a Model That a Firm's Management Can Use