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Which of the following techniques analyzes all incremental costs associated with acquiring and carrying particular items of inventory?

a. cyclical reordering
b. reorder point analysis
c. EOQ models
d. ABC analysis

User Jani Bela
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1 Answer

6 votes

Final answer:

The technique that analyzes incremental costs associated with acquiring and carrying inventory is the Economic Order Quantity (EOQ) model, which helps in minimizing the total inventory costs.

Step-by-step explanation:

The technique that analyzes all incremental costs associated with acquiring and carrying particular items of inventory is known as the Economic Order Quantity (EOQ) model. The EOQ model is used to determine the optimal order quantity that minimizes the total inventory costs, which include ordering costs (costs of acquiring inventory) and holding costs (costs of carrying inventory). By using this model, businesses can make informed decisions about ordering frequency and order quantities to minimize costs while still meeting demand.

User DawnPaladin
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