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

The Economic Order Quantity model (EOQ) is a mathematical model used to calculate the quantity

Q. 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

A.            The above statement is correct

B.            The above statement is incorrect

Answer: The above statement is correct

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