Economic Order Quantity is

a. The quantity ordered for the maximum discount

b. The smallest quantity ordered that can be accommodated in the warehouse

c. The quantity which balances the ordering costs and inventory carrying costs

d. The quantity for which the supplier gives the best credit terms

Question

Valentin

Social Studies

11 February, 06:33

Economic Order Quantity is

a. The quantity ordered for the maximum discount

b. The smallest quantity ordered that can be accommodated in the warehouse

c. The quantity which balances the ordering costs and inventory carrying costs

d. The quantity for which the supplier gives the best credit terms

+3

Answers (1)

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Snickers · Answer 1

The answer is letter C. Economy order quantity is the quantity which balances the ordering costs and inventory carrying costs. Economy order quantity is one of the oldest classical production scheduling models. The said framework is also known as Wilson EOQ Model.

Economic Order Quantity isa. The quantity ordered for the maximum discountb. The smallest quantity ordered that can be accommodated in the warehousec. The quantity which balances the ordering costs and inventory carrying costsd. The quantity for which the supplier gives the best credit terms