The ________ is an inventory technique that takes into account various operating and financial costs to determine the order quantity for a specific inventory item.
A) exponential smoothing technique
B) ABC system
C) EOQ model
D) LIFO model

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) model is a well-known inventory management technique that takes into account various carrying and ordering costs to calculate the ideal order quantity for a particular inventory item. It considers the optimal trade-off between ordering too frequently (incurring high ordering costs) and ordering too infrequently (incurring high carrying costs). The other options listed (A, B, and D) are not relevant to this inventory management technique.

The ________ Is an Inventory Technique That Takes into Account