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

Question

Economic Order Quantity (EOQ).

26 Mar 2026

Answer :

Word Count : 208

Economic Order Quantity (EOQ) is a fundamental inventory management technique used in retail supply chain management to determine the optimal order size that minimizes total inventory costs. These costs primarily include ordering costs, such as administrative expenses and transportation, and holding or carrying costs, such as warehousing, insurance, and obsolescence. In a retail context, where demand patterns can fluctuate and product variety is high, EOQ helps maintain a balance between overstocking and stockouts. The EOQ model assumes relatively stable demand, constant lead time,

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