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Economic Order Quantity is

AThe quantity ordered for the maximum discount
BThe smallest quantity ordered that can be accommodated in the warehouse
CThe quantity which balances the ordering costs and inventory carrying costs
DThe quantity for which the supplier gives the best credit terms

Verified Answer :

metchelle

The answer is letter C. Economy order quantity is the quantity which balances the ordering costs and inventory carrying costs. Economy order quantity is one of the oldest classical production scheduling models. The said framework is also known as Wilson EOQ Model.

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