Was this answer helpful? EOQ stands for Economic Order Quantity, and it is used for inventory management.
What is EOQ and its formula?
The economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs. The term optimum lot size is also used to refer to the economic order quantity.
Which of the following is part of the determination of EOQ?
Mark Achin sells 3,600 electric motors annually; which of the following is a factor in determining EOQ?
Which of the following cost is associated with inventories Mcq?
| Q. | Which of the following cost is associated with inventories? |
|---|---|
| A. | carrying cost |
| B. | ordering cost |
| C. | over stocking cost |
| D. | all of these |
The Basic EOQ model makes the following assumptions: Product cost is fixed, lead time is zero, usage rate is constant, and inventory cost is fixed.