Question

The objective of the EOQ with quantity discounts model is to ______(A) minimize the sum of annual carrying, holding, and purchase costs.(B) balance annual ordering and holding costs.(C) minimize annual purchase cost.(D) determine the minimum order quantity required for the maximum discount.

Answer 1

Answer:

The correct answer is A

Explanation:

EOQ stands for Economic order quantity, it is the model which evaluated or determine the amount to order by using the assumptions that cost per unit of the items purchased which remain fixed irrespective of the number of the units ordered.

The quantity discount model that investigates the aggregate annual inventory costs with and without discounts. The main motive of EOQ with the quantity discount model is to minimize the total of the purchase, annual carrying and holding cost.