Question

Which type of buying method attempts to predict in advance how much inventory will be needed during a specific time period? A. Economic order quantity B. Fixed order C. Just In Time (JIT) D. Last In First Out (LIFO)

Answer 1

The answer is A, Economic order quantity.

Answer 2

Economic order quantity (EOQ) is the type of buying method that attempts to predict in advance how much inventory will be needed during a specific time period. Correct answer: A
EOQ defines the optimum quantity of goods to be purchased at one time in order to minimize the annual total costs. Total annual costs are ordering and carrying or holding items in inventory.