Question

A company that has regular replenishments of small-value items, such as a grocery store, most likely would use which of the following to determine how μch to order of a given item?

a) Reorder point
b) EOQ (Economic Order Quantity)
c) Materials Requirements Planning
d) Periodic review

Answer 1

A company that has regular replenishments of small-value items, such as a grocery store, most likely would use the EOQ (Economic Order Quantity) to determine how much to order of a given item.

Step-by-step explanation:

A company that has regular replenishments of small-value items, such as a grocery store, most likely would use the EOQ (Economic Order Quantity) to determine how much to order of a given item.

The EOQ is a mathematical formula that determines the optimal order quantity by balancing the costs of ordering and holding inventory.

By calculating the EOQ, the company can minimize the total cost of ordering and holding inventory, ensuring that they order the right amount of the item to meet customer demand without incurring excessive costs.