The economic order quantity is most widely used for determining how much to order in
A)a periodic inventory system.
B)a continuous inventory system.
C)an on-demand inventory system.
D)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Economic order quantity (EOQ) is most commonly used in a continuous inventory system because it assumes that inventory levels are constantly being monitored and restocked as soon as they reach a certain level. In a periodic inventory system, inventory levels are only monitored at set intervals and therefore the EOQ formula may not be as accurate. An on-demand inventory system typically involves ordering items as needed rather than in bulk, so EOQ would not be relevant in this type of inventory system.

The Economic Order Quantity Is Most Widely Used for Determining