The EOQ model with quantity discounts attempts to determine
A)what is the lowest purchasing price.
B)whether to use fixed-quantity or fixed period order policy.
C)how many units should be ordered.
D)what is the shortest lead time.
E)what is the lowest amount of inventory necessary to satisfy a certain service level.

Question

Quizplus · Accepted Answer

The EOQ model with quantity discounts attempts to determine the optimal order quantity at which the total cost (ordering cost + holding cost) is minimized, taking into account the discounted price for purchasing larger quantities. Therefore, the model aims to determine how many units should be ordered.

The EOQ Model with Quantity Discounts Attempts to Determine