Q357
Decision model to calculate optimal quantity of inventory to be ordered is called
A.
efficient order quantity
B.
economic order quantity
AnswerC.
rational order quantity
D.
optimized order quantity
Answer: Option B
Solution
Answer: Option B
Solution:
Decision model to calculate optimal quantity of inventory to be ordered is called economic order quantity. Economic Order Quantity (EOQ) is a production formula used to determines the most efficient amount of goods that should be purchased based on ordering and carrying costs.