IGNOU BRL 115 2026 - Economic Order Quantity (EOQ).

Question

Economic Order Quantity (EOQ).

27 Feb 2026

Answer :

Word Count : 215

Economic Order Quantity (EOQ) is a fundamental concept in supply chain management, particularly in retail business operations. It refers to the optimal order quantity that minimizes total inventory costs, including ordering costs and holding costs. The objective of EOQ is to determine the most efficient amount of stock to order so that the business can maintain a smooth flow of operations without overstocking or running out of stock. EOQ helps businesses strike a balance between two main costs: ordering costs, which increase with the frequency of

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