EOQ focuses on the trade-off between ________.
A)carrying costs and delivery costs
B)seasonality and steady production
C)carrying costs and ordering costs
D)fixed and variable costs

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) model focuses on finding the optimal quantity of inventory to order, based on the trade-off between carrying costs (costs of holding inventory) and ordering costs (costs of placing an order). The model assumes that demand is known and constant, and that the lead time for replenishment is fixed. Therefore, choices A, B, and D do not accurately describe the trade-off that EOQ considers.

EOQ Focuses on the Trade-Off Between ________