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__________ is the quantity to be ordered at one time to minimize the overall variable cost.
Economic Order Quantity
Reorder Level
Safety stock Level
Maximum Level
Economic Order Quantity (EOQ) is the quantity to be ordered at one time to minimize the overall variable cost i.e. total ordering cost and carrying cost.
It is calculated as:
√ 2 (x) C (x) O/ I
Where, C= Annual Consumption
O= Ordering cost per order
I= Inventory Carrying Cost per unit per annum (% on Purchase price per unit)
By: Vikas Goyal ProfileResourcesReport error
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