Question

 Economic Order Quantity (EOQ).

16 Feb 2026
Answer :
Word Count : 239
Economic Order Quantity (EOQ) is a fundamental inventory management technique used in retail supply chain management to determine the optimal order quantity that minimizes total inventory costs. In the retail sector, effective supply chain management requires balancing ordering costs and carrying costs to ensure product availability while controlling expenses. EOQ provides a scientific basis for deciding how much stock a retailer should order each time. Ordering costs include expenses related to placing and receiving orders, such as transportation, paperwork, and supplier coordination. Carrying costs refer to the cost of holding inventory in storage, including warehousing, insurance,
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