The __________ places new orders when inventory levels fall to predetermined points.
A) master level method
B) economic order quantity method
C) purchasing control level method
D) financial minimum level method

Question

Quizplus · Accepted Answer

The economic order quantity (EOQ) method is used to determine the optimal order quantity that minimizes the total inventory costs, including ordering and holding costs. It places new orders when inventory levels fall to predetermined points to ensure efficient inventory management.

The __________ Places New Orders When Inventory Levels Fall to Predetermined