ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The ideal order quantity a company should purchase for its inventory given a cost set of production, demand rate, and other variables is known as:
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Reorder point
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Economic order quantity
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Anticipation stock
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Inventory control
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Explanation:
Detailed explanation-1: -The economic order quantity (EOQ) refers to the ideal order quantity a company should purchase in order to minimize its inventory costs.
Detailed explanation-2: -Economic order quantity (EOQ) is a term for the ideal quantity a company should purchase to minimize its inventory costs, like shortage or carrying costs.
Detailed explanation-3: -Economic Order Quantity The total cost of inventory is the sum of the purchase, ordering and holding costs. As a formula: TC = PC + OC + HC, where TC is the Total Cost; PC is Purchase Cost; OC is Ordering Cost; and HC is Holding Cost.
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