The economic order quantity ignores:
A)purchasing costs
B)relevant ordering costs
C)stockout costs
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) formula only considers the costs of holding inventory and does not take into account the purchasing costs (such as supplier negotiations, inspections, or transportation) or the stockout costs that may result from ordering too little or too late. Therefore, options A and C are correct, and D is the best choice.

The Economic Order Quantity Ignores