The goal of the basic EOQ model is to:
A)minimize order size
B)minimize order cost
C)minimize holding cost
D)minimize the sum of purchasing and setup costs
E)minimize the sum of setup and holding costs

Question

The goal of the basic EOQ model is to:
A)minimize order size 
B)minimize order cost 
C)minimize holding cost 
D)minimize the sum of purchasing and setup costs 
E)minimize the sum of setup and holding costs

Quizplus · Accepted Answer

The basic Economic Order Quantity (EOQ) model aims to minimize the total cost, which is the sum of setup (ordering) and holding costs.

The Goal of the Basic EOQ Model Is To