Question

 

 Economic Order Quantity (EOQ).

01 Mar 2026
Answer :
Word Count : 243
Economic Order Quantity (EOQ) is a scientific inventory control technique used in retail supply chain management to determine the optimal order quantity that minimizes total inventory costs. In retail business, maintaining the right balance between ordering costs and carrying costs is crucial. If a retailer orders in small quantities frequently, ordering costs such as transportation, paperwork, and administrative expenses increase. On the other hand, ordering in large quantities reduces ordering frequency but increases holding or carrying costs such as storage, insurance, risk of damage, obsolescence, and capital blockage. EOQ helps in finding the most economical quantity that
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