What is the term used to describe the order size that minimizes the total combined costs of ordering and holding inventory?

Economic Order Quantity (EOQ) is an inventory management technique that determines the ideal order quantity a company should purchase to minimize its total inventory costs. Total inventory costs primarily consist of two opposing components: ·        Ordering Costs: Costs associated with placing and processing an order (e.g., administrative, shipping, and handling costs). These decrease per unit as order size increases. ·        Carrying (Holding) Costs: Costs associated with holding inventory in stock (e.g., storage, insurance, and obsolescence costs). These increase as order size increases. At the Economic Order Quantity (EOQ) point, the annual ordering cost equals the annual carrying cost, resulting in the lowest possible total inventory cost.