‘EOQ’ is used in:

Inventory Management
Receivables Management
Cash Management
Ratio Analysis

The correct answer is: A. Inventory Management.

Economic order quantity (EOQ) is a model for determining the optimal quantity of goods to order at a time. The model takes into account the cost of ordering goods, the cost of carrying inventory, and the cost of stockouts. The EOQ model can be used to minimize the total cost of inventory management.

Receivables management is the process of managing accounts receivable. Accounts receivable are the amounts of money that a company is owed by its customers. Receivables management involves tracking customer payments, collecting overdue payments, and writing off bad debts.

Cash management is the process of managing a company’s cash flow. Cash management involves forecasting cash needs, investing excess cash, and managing short-term debt.

Ratio analysis is the process of using financial ratios to analyze a company’s financial performance. Ratio analysis can be used to assess a company’s liquidity, profitability, solvency, and efficiency.

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