ECONOMICS

Detailed explanation-1: -The quantity to be ordered at one time is known as ‘ordering quantity’ and should be determined with good care. It is also known as (EOQ) Economic order quantity.

Detailed explanation-2: -the quantity of an item to be ordered when STOCKS of the item fall to a predetermined minimum stock level. The reorder quantity should serve to replenish stock to the planned maximum stock level. The optimum order quantity may be ascertained by means of a STOCKHOLDING MODEL.

Detailed explanation-3: -Economic Order Quantity (EOQ), also known as Economic Buying Quantity (EPQ), is the order quantity that minimizes the total holding costs and ordering costs in inventory management.

Detailed explanation-4: -Economic order quantity is an inventory management technique that helps make efficient inventory management decisions. It refers to the optimal amount of inventory a company should purchase in order to meet its demand while minimizing its holding and storage costs.

Detailed explanation-5: -What is optimal order quantity? Optimal order quantity is the most cost-effective amount of inventory that a business should have at any given time. Put simply, this calculation represents your ideal order size to meet demand without tying up too much working capital in excess stock.