Question

The EOQ model Group of answer choices determines the order size that minimizes total inventory costs. determines when to place an order. is very sensitive to changes in demand or cost estimates. All of the above

Answer 1

All of the above

Step-by-step explanation:

The economic order quantity refers to find out the size of order by minimizing the total cost i.e carrying cost and the ordering cost. It also tells when to place an order plus it is very sensitive to change the demand or estimation of the cost

The formula to compute the economic order quantity is

`= \sqrt{\frac{2* \text{Annual demand}* \text{Ordering cost}}{\text{Carrying cost}}}`

Hence, the all of the above option is correct