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    Question

    ……………….. is the order size that minimizes

    the sum of ordering and holding costs related to raw material inventories
    A Efficient Order Correct Answer Incorrect Answer
    B Cost Minimising Correct Answer Incorrect Answer
    C EOQ Correct Answer Incorrect Answer
    D B or C Correct Answer Incorrect Answer
    E A or B Correct Answer Incorrect Answer

    Solution

    Economic order quantity (EOQ) is the order size that minimizes the sum of ordering and holding costs related to raw material inventories. · It is the optimal inventory size that should be ordered with the supplier to minimize the total annual inventory cost of the business.

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