The EOQ model is designed to determine how much:
A)total inventory a firm needs in any one year.
B)total inventory costs will be for any one given year.
C)inventory should be purchased at a time.
D)inventory will be sold per day.
E)a firm loses in sales per day when an inventory item is depleted.

Question

Quizplus · Accepted Answer

The EOQ model (Economic Order Quantity) is designed to determine the optimal quantity of inventory that should be ordered/purchased at any given time to minimize inventory carrying costs and ordering costs. Therefore, the correct answer is C - inventory should be purchased at a time.

The EOQ Model Is Designed to Determine How Much