The amount of inventory to order that will total the minimum total ordering and holding costs is called the ________.
A) Economic Order Quantity (EOQ)
B) Economic Reorder Point (ERP)
C) Reorder Point (ROP)
D) Cost Accounting Point

Question

Quizplus · Accepted Answer

Economic Order Quantity (EOQ) is the correct answer as it is the calculation of the quantity of goods to order that will result in the lowest total cost of ordering and holding inventory. The other options refer to different inventory management terms and are not directly related to the calculation of the optimal ordering quantity.

The Amount of Inventory to Order That Will Total the Minimum