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11. EOQ is the order quantity that========== over our
planning horizon
a) Minimizes total ordering costs
b) Minimizes total carrying costs
c) Minimizes total inventory costs
d) The required safety stock
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Answer / s.k. pradhan
Eoq is the technique to determine the most profitable order
quantity with minimum cost.So it minimize total inventory
costs.i.e. (c)
| Is This Answer Correct ? | 59 Yes | 3 No |
Answer / haji
Economic order quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs.
Here it is said that inventory holding costs but not only the inventory cost, so the most perfect answer is " Minimizes total Ordering Costs"
| Is This Answer Correct ? | 10 Yes | 3 No |
Answer / khayamuddin
An inventory-related equation that determines the optimum
order quantity that a company should hold in its inventory
given a set cost of production, demand rate and other
variables. This is done to minimize variable inventory
costs.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / bhaskararao
econamic quantity order is entirely based on quqntit yo fan
order and it deals not only holding cost (maintinence of
w/h,power,.....)it also based on the order cost, so i think
the best possibleanswr is (a) thatis it reduce the total
order costs
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / muhammed
Economic order quantity is the level of inventory that
minimizes the total inventory holding costs and ordering costs.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / vaman261978
Answer is a. It minimizes total ordering costs.
| Is This Answer Correct ? | 8 Yes | 9 No |
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