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fenix001 [56]
3 years ago
12

Economic Order Quantity computes:

Business
1 answer:
Mamont248 [21]3 years ago
7 0

Answer:

D: Optimum Order size​

Explanation:

Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.

Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.

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