[amp_mcq option1=”ordering quantity” option2=”commercial order quantity” option3=”economic order quantity” option4=”None of these” correct=”option3″]<\/p>\n
The correct answer is: Economic order quantity (EOQ)<\/strong>.<\/p>\n The economic order quantity (EOQ) is the optimal quantity of inventory to order at one time. It is the quantity that minimizes the total cost of ordering and carrying inventory.<\/p>\n The EOQ is calculated using the following formula:<\/p>\n $$EOQ = \\sqrt{\\frac{2DC}{\\lambda}}$$<\/p>\n where:<\/p>\n The EOQ is a useful tool for businesses to manage their inventory levels. By ordering the EOQ, businesses can minimize their costs and ensure that they have enough inventory on hand to meet customer demand.<\/p>\n Option A: Ordering quantity is the quantity of material that is ordered at one time. It is not necessarily the optimal quantity, as it may not take into account the costs of ordering and carrying inventory.<\/p>\n Option B: Commercial order quantity is a term used in the retail industry to refer to the quantity of goods that a retailer orders from a supplier. It is not necessarily the optimal quantity, as it may not take into account the costs of ordering and carrying inventory.<\/p>\n Option C: None of these is the correct answer.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”ordering quantity” option2=”commercial order quantity” option3=”economic order quantity” option4=”None of these” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-52447","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n