The correct answer is: A. efficient order quantity.
The efficient order quantity (EOQ) is a decision model for determining the optimal quantity of inventory to order. It is based on the following assumptions:
- Demand is constant.
- Lead time is constant.
- The cost of ordering is independent of the order quantity.
- The cost of carrying inventory is proportional to the average inventory level.
- The cost of goods sold is constant.
The EOQ model minimizes the total cost of ordering and carrying inventory. The formula for calculating the EOQ is:
$EOQ = \sqrt{\frac{2DC}{h}}$
where:
- D = annual demand
- C = cost of placing an order
- h = holding cost per unit per year
The EOQ model can be used to determine the optimal order quantity for a variety of products. It is a simple and effective way to manage inventory costs.
Option B, economic order quantity, is a synonym for EOQ. Option C, rational order quantity, is not a commonly used term. Option D, optimized order quantity, is a more general term that could refer to any method of determining the optimal order quantity.