Respuesta :
The answer is b. how much to order. The Economic Order Quantity (EOQ) model is a tool used to determine the optimal order quantity that will minimize the total costs of inventory, such as ordering and holding costs.
What is Economic Order Quantity?
Economic Order Quantity (EOQ) is a model used to determine the optimal order quantity a company should purchase to meet customer demand while minimizing costs associated with holding inventory. EOQ is based on the principle that, while it is costly to place frequent orders, it is also costly to hold large amounts of inventory. EOQ helps to identify the most economical order size to purchase, in order to minimize total inventory cost. This model takes into account the cost of ordering, holding, and shortage of inventory. The optimal order quantity is determined by dividing the annual demand by the number of orders that can be placed in one year. This is then multiplied by the carrying cost of inventory, and divided by the ordering cost. The result is the Economic Order Quantity.
The EOQ model helps to answer how much to order, by calculating the optimal order quantity that will minimize the total costs associated with inventory.
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