EOQ includes several variables that must be taken into consideration when calculating the optimal order size.One variable,the costs associated with holding inventory,is referred to as

Question

Quizplus · Accepted Answer

The costs associated with holding inventory are referred to as carrying costs. Therefore, option B is the correct choice. Option A refers to costs associated with placing an order, option C refers to the inventory level at which a new order is placed, and option D refers to the costs associated with running out of stock.

EOQ Includes Several Variables That Must Be Taken into Consideration