The economic order quantity is given by ______.
A)the square root of ((2 times demand times ordering costs)divided by holding costs)
B)the square root of (holding costs divided by (2 times demand times ordering costs))
C)the square of ((2 times demand times ordering costs)divided by holding costs)
D)the square of (holding costs divided by (2 times demand times ordering costs))

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) formula is given by the square root of ((2 times demand times ordering costs) divided by holding costs), which is used to determine the optimal order quantity that minimizes the total inventory costs.

The Economic Order Quantity Is Given by ______