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

Question

Economic Order Quantity (EOQ).

13 May 2026

Answer :

Word Count : 321

Economic Order Quantity (EOQ) is an important inventory management technique used in retail supply chain management. It refers to the ideal quantity of goods that a retailer should order at one time to minimize the total inventory cost. These costs mainly include ordering cost and carrying or holding cost. EOQ helps retailers maintain an optimum stock level and avoid unnecessary expenses. The EOQ concept was developed to answer two important questions: how much quantity should be ordered and when should the order be placed. In retail business,

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