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Economic order quantity is used to optimize:

A. Carrying cost

B. Ordering cost 

C. Both 

D. None of above

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Question added by Wasim khan wazir , Finance Specialist , Mott Macdonald
Date Posted: 2016/04/04
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

EOQ will optimize both Carrying Cost and Ordering Cost. Thus, option C is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

Option C================================

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

C. Both >>>>>>>>>>>>>>>>>>>>>>>>>>>>

Mobeen Tahir
by Mobeen Tahir , Credit Officer , Tawuniya Insurance

Option C is the right answer

Abdul Khalique
by Abdul Khalique , Finance Manager , Value Real Estate & Construction

Thanks for invitation..

 

Economic order quantity is used to optimise ordering and carrying costs of inventory. EOQ represents the size of the order for which both ordering and carrying costs together are minimum. If purchases are made in large quantities, inventory carrying cost will be high. If the order size is small, ordering cost will be high. Hence, it is necessary to determine the order quantity for which ordering and carrying costs are minimum.

So, the answer is (C).

thanks for the invitation

Answer ( C ) Both

 

With my best wishes to you

Alaa Ibrahim Ahmed Ibrahim Yousuf
by Alaa Ibrahim Ahmed Ibrahim Yousuf , Cash Administrator , Shabakkat Cellular Company

i fully agree with answer no 3

Ahmed Siddiq
by Ahmed Siddiq , Senior Associate , Fin-eX Outsourcing

Economic order quantity is used to optimize the ordering cost.

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

my choice is option " C " Both

 

Dasarathi Rath
by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

The size of an order for both ordering and carrying cost are minium is optimize an Economic Ordering quantity :- C. Both

HASSAN AHMED
by HASSAN AHMED , Internal Auditor , TIE

The correct answer is C, because EOQ (Economic Order Quantity) minimizes carrying and ordering cost.