The inventory order quantity that minimizes total holding and ordering costs is which of the following?
A)Barabus economic order quantity (EOQ)
B)Cornett economic order quantity (EOQ)
C)Operations management
D)Production management

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) is a well-known inventory management model that is used to determine the optimal order quantity that minimizes the total cost of inventory by balancing the cost of holding inventory against the cost of ordering. The Barabus EOQ is a variant of the EOQ model and is used when there are limitations on the assumptions of the conventional EOQ model, such as constant demand, fixed ordering costs, and static lead times. Therefore, the Barabus EOQ can be considered the best choice when the inventory order quantity that minimizes total holding and ordering costs needs to be determined.

The Inventory Order Quantity That Minimizes Total Holding and Ordering