EOQ stands for ________.

The correct answer is: A. Economic Order Quantity.

EOQ stands for Economic Order Quantity. It is the optimal quantity of goods to order at a time in order to minimize the total costs associated with ordering and carrying inventory.

The EOQ is calculated by taking into account the following factors:

• The cost of ordering goods
• The cost of carrying inventory
• The demand for the goods
• The lead time for the goods

The EOQ can be calculated using the following formula:

EOQ = √(2DC/h)

where:

• D = the demand for the goods in units per year
• C = the cost of ordering goods per order
• h = the holding cost per unit per year

The EOQ is a useful tool for businesses to minimize their inventory costs. By ordering the optimal quantity of goods at a time, businesses can save money on ordering costs and carrying costs.

The following are the other options and their explanations:

• Option B: Essential Order Quantity. This is not a standard term in inventory management.
• Option C: Economic Output Quantity. This is not a standard term in inventory management.
• Option D: Essential Output Quantity. This is not a standard term in inventory management.