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Which of the following businesses would most likely use economic order quantity (EOQ) as a method of inventory control?

a. Seasonal clothing store
b. Newspaper stand
c. Fresh produce market
d. Auto parts supplier

1 Answer

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Final answer:

The auto parts supplier would most likely use economic order quantity (EOQ) as a method of inventory control.

Step-by-step explanation:

The business that would most likely use economic order quantity (EOQ) as a method of inventory control is d. Auto parts supplier.

EOQ is a formula used to determine the optimal order quantity that minimizes total inventory costs, including holding costs and ordering costs.

An auto parts supplier typically has a large and diverse inventory with high demand variability. EOQ helps the supplier to balance the cost of holding inventory with the cost of ordering more inventory.

For example, an auto parts supplier can use EOQ to determine how many units of each part to order at a time, taking into account factors such as the cost of holding inventory, the cost of ordering, and the rate of customer demand.

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