The quantity that minimizes BOTH ordering and storing costs is called:
A) JIT
B) EDI
C) EOQ
D) SRM
E) ESI

Question

Quizplus · Accepted Answer

EOQ stands for economic order quantity, which considers the trade-off between ordering and storing costs. EOQ calculates the optimal quantity of inventory to order that minimizes the total cost of ordering and holding inventory. Choosing EOQ will help a company to manage inventory efficiently, reducing the ordering cost by ordering optimal quantities, and minimizing the storing cost by avoiding excessive stock. Thus, EOQ is the best choice to minimize both ordering and storage costs.

The Quantity That Minimizes BOTH Ordering and Storing Costs Is