What costs are considered in the basic EOQ model?
A) annual ordering costs + annual holding costs
B) annual purchasing costs + annual holding costs
C) annual ordering costs + annual holding costs + annual shortage costs
D) annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs
E) ordering costs per order + annual holding costs

Question

Quizplus · Accepted Answer

The basic EOQ model takes into account both the annual ordering costs and annual holding costs associated with inventory management.

What Costs Are Considered in the Basic EOQ Model