…………….. is an optimum quantity of material to be ordered every time an order is placed. EOQ may be defined as that quantity of purchase which minimizes material order cost and material carrying cost

Q. …………….. is an optimum quantity of material to be ordered every time an order is placed. EOQ may be defined as that quantity of purchase which minimizes material order cost and material carrying cost

A.            Quantity in such lot which has maximum discount

B.            Special Order Quantity (SOQ)

C.            Standard Order Quantity (SOQ)

D.            Economic Order Quantity (EOQ)

Answer: Economic Order Quantity (EOQ)