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

Question

Economic Order Quantity (EOQ).

01 Mar 2026

Answer :

Word Count : 216

Economic Order Quantity (EOQ) is a fundamental concept in inventory management, especially relevant in retail supply chain management. It is a calculation used to determine the optimal order quantity that minimizes the total cost of inventory, including ordering costs and holding costs. The goal of EOQ is to find a balance between ordering frequently in small quantities and ordering in large quantities, which incurs higher holding costs.

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