Q210
Economic order quantity is that quantity at which cost of holding and carrying inventory is:
A.
Maximum and equal
B.
Minimum and equal
AnswerC.
It can be maximum or minimum depending upon case to case
D.
Minimum and unequal
Answer: Option B
Solution
Answer: Option B
Solution:
Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.