QUESTION
Objective Question
The abbreviation EOQ stands for
संक्षिप्त नाम EOQ है
Answer
( Option A)
Economic Order Quantity
Solution
EOQ stands for Economic Order Quantity, which is an inventory management tool.
Economic Order Quantity:
- How much to buy at a time, or more specifically, for how much inventory to place an order at a time, is one of the crucial decisions that a company must make when managing its inventory.
- The term "Economic Ordering Quantity" applies to this.
- Baumol's cash management model is the foundation of the EOQ model.
- Economic Order Quantity
Important Points:
EOQ determination:
Ordering cost and carrying cost are the two costs that should be used to determine EOQ.
- Economic ordering quantity is set at a level where the sum of the two opposing costs is the lowest.
- A balance is struck between the two opposing costs.
- Ordering Costs: It is the price associated with placing an order to purchase inventory.
- It might occasionally change depending on how many orders are placed and how many things are ordered in each order.
- Carrying Costs It is a cost associated with maintaining inventories within a business; examples include interest on investments, obsolescence losses, insurance premiums, rent, and store-keeping expenses.
- Carrying costs and inventory volume have a positive relationship.
