In inventory control theory, the economic order quantity (EOQ) is the____________________?
Correct answer: B. Optimum lot size
- A. Lot size corresponding to break even analysis
- B. Optimum lot size
- C. Average level of inventory
- D. None of these
Explanation
EOQ is the order or lot size that minimizes the combined ordering and inventory holding costs. It is therefore called the optimum lot size, not the average inventory level.
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