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

Question

Economic Order Quantity (EOQ).

28 Feb 2026

Answer :

Word Count : 208

Economic Order Quantity (EOQ) is a fundamental concept in supply chain management, particularly in retail businesses, used to determine the optimal order quantity that minimizes total inventory costs. It is a formula that calculates the ideal order size by balancing ordering costs and holding costs. The EOQ model assumes constant demand, fixed ordering costs, and fixed holding costs, aiming to reduce both overstocking and understocking. The formula for EOQ is: [ EOQ =

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