IGNOU BCOC 138 2026 - What is economic order quantity? How is it calculated?

Question

What is economic order quantity? How is it calculated?

16 Feb 2026

Answer :

Word Count : 536

Economic Order Quantity (EOQ) is a quantitative technique used in cost accounting and inventory management to determine the optimal order size that minimizes the total cost of inventory. The total cost considered in EOQ includes ordering cost and carrying (or holding) cost. The primary objective of EOQ is to identify the most economical quantity of materials to be ordered so that the combined cost of ordering and storing inventory is as low as possible. It is an important tool for efficient materials control and helps management in avoiding overstocking or understocking of inventory. In any manufacturing or trading concern, inventory constitutes a significant portion of working capital.

__________ __________ _____ ________ _________ ____ _____ _______ ________.
___ ___ _________ ______ ____.
________ ________ __________ ______ ___ _________ _____ _______.
__________ _________ ________ _______ _________ __________ _______ ______ ______ ___.
__________ ____ ___ ______ __________ ____ __________ _______ ______ ___ ____.
__________ _________ __________ ____ ______ ________ __________.
____ ____ ____ ____ _________ _____ __________ ________ ______ ___ ______ _____.
______ _________ ________ _________ ________.
__________ _____ _________ ______ _______ ____ ____ _______ _______ _______ ___ _______.
_______ ____ ______ _________ _________ _______ _________ _____ _______ _____ ____.
__________ _________ ____ _____ _________ _________ ___ ___ _______ __________ _________.
__________ ________ ____ ______ ________ __________ ______ __________ _______.
______ _____ ____ ___ __________ ___ __________ _______ _________ ______ ___.
_____ ___ _______ __________ ___ ______ _________.
____ ________ ______ _________ _____ __________ _________.
___ __________ __________ ________ __________ ________ ________ _________ ______ ___.
__________ _____ ___ ______ ____ _______ ___ ________ ____ ______ ________ _________.
________ __________ ______ ____ __________ ________.
__________ ___ __________ _____ __________ _______ _______ _____ _________.
_______ _______ ___ ________ _______ __________ _________ ____ ______.
________ ______ ____ _____ ____.
_____ _______ _________ _________ ____ _________ ____.
_________ ____ __________ _______ ___ _____ _____ _________ _____ __________ ___.
_________ _______ __________ ______ ________ __________ _______ _____ ____ __________ _____.
___ _______ ________ ____ ___ _____ _____.
_____ _________ ____ ________ ___ ______ _____ _______ _____ _______.
______ ____ ________ ________ ________ ______.
_________ _______ _________ ___ _______ ________ _______.
__________ ___ _____ ___ ___.
_____ ____ ____ _____ _____.
__________ ________ _____ __________ _________ ____ ________ ________.
________ _____ _______ _______ ____ _______ _______.
_________ ___ __________ _________ __________ ________.
____ _________ _______ _____ _____ ______ _____ _________ _____ ________.
_______ ______ _____ ____ _____ _____ ______ __________ ______ _______ _______ ______.
____ _____ ______ ____ _________ __________ _________ ___ ___ __________ ___.
____ ______ _____ __________ ________ _______ ____.
_____ ___ ______ ________ ________ __________.
_______ _____ __________ _______ ______ _____ ___ _______.
_________ ________ _______ _______ ____ __________ ______ _________ _________.
________ ____ ____ _______ ___ _________ ______ _______ __________.
__________ ____ _____ ____ ________ ________ _____ _________ _________ __________ __________.
___ ___ ___ ___ ___ ________ _________ _____ ____ _________ ___.
____ ____ ______ ____ ___ _______ __________ _____.
___ ______ ______ ______ ____.
_____ ______ ___ ___ _______ __________ _______ ___ _____.
_______ _______ _______ _____ _______ _____ _________ ___ __________ ______ ______ __________.
__________ __________ _____ __________ ________ __________ _________ ________ _________ ___ ________.
____ __________ ____ _____ ______ ___ ____.
__________ ______ ______ ________ _________ __________ ______.

IGNOU ACADEMY

Your IGNOU journey, made easier.

Solved Assignments
Study Notes
Guess Papers
Question Papers

Call Us WhatsApp

STUDY • PREPARE • SUCCEED

Skip in 10

Related Questions

Date	Purchases Units	Rate (Rs.)	Issues
Jan 1	500	5.00	–
Jan 8	300	5.10	–
Jan 13	–	–	600
Jan 18	400	5.20	–
Jan 23	–	–	300
Jan 25	500	5.10	–
Jan 31	–	–	200

IGNOU Solved Assignments Assignments Ignou Projects Project Previous Year Solved Exam Papers Notes Notes Sample Question Papers Sample Question Papers