Inventory Management MCQs

For the purpose of Economic order quantity (EOQ) the relevant costs are

April 27, 2022

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For the purpose of Economic order quantity (EOQ) the relevant costs are

Q. For the purpose of Economic order quantity (EOQ) the relevant costs are:

A. The annual holding cost per item per annum

B. The annual ordering costs

C. Both A&B

D. None

Answer: Both A&B

For the purpose of Economic order quantity (EOQ) the relevant costs are

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The Economic Order Quantity model (EOQ) is a mathematical model used to calculate the quantity of inventory to order from a supplier each time that an order is made. The aim of the model is to identify the order quantity for any item of inventory that minimizes total annual inventory costs

For the purpose of Economic order quantity (EOQ) the relevant costs are

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In the economic order quantity or EOQ model the equation (Q/2) × CH calculates

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