Ordering a fixed number of items every time an inventory level falls to a predetermined point is called the __________.
A)Inventory control number.
B)Quality control paradox.
C)Economic order quantity.
D)Break-even quantity.
E)Fixed quantity inventory.

Question

Quizplus · Accepted Answer

This is the definition of economic order quantity, which is a common method used in inventory management to balance the costs of carrying inventory (holding costs) and the costs of placing orders (ordering costs). It involves calculating the optimal order quantity that minimizes total inventory costs.

Ordering a Fixed Number of Items Every Time an Inventory