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) breakeven quantity
E) fixed quantity inventory

Question

Quizplus · Accepted Answer

This is the definition of the economic order quantity (EOQ) system, which calculates the optimal order size to minimize inventory holding costs and ordering costs. It aims to maintain a consistent inventory level while minimizing total inventory costs. Options A, B, D and E are not the correct terms for this concept.

Ordering a Fixed Number of Items Every Time an Inventory