Question

EOQ stands for

• A. Economic Order Quantity
• B. Equipment Order Quantity
• C. Essential Order Quantity
• D. Enlisted Order Quantity

Hint:

EOQ = Economic Order Quantity. It’s all about minimizing the total cost of your stock.

Answer 1

The Correct Option is A

Step 1: Concept
EOQ is a fundamental formula used in inventory management to determine the ideal order size.

Step 2: Meaning
It represents the quantity that minimizes the total costs associated with ordering and holding inventory.

Step 3: Analysis
Ordering too frequently increases ordering costs, while ordering too much at once increases storage (carrying) costs. EOQ finds the "Economic" balance between these two.

Step 4: Conclusion
The correct full form is Economic Order Quantity.

Final Answer: (A)