Question

True/False

"The objective of the economic order quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs"

Answer 1

Answer: The correct answer is "True".

Step-by-step explanation:

The statement: "The objective of the economic order quantity model is to reduce total inventory costs by minimizing carrying costs and ordering costs" is TRUE because the purpose of the economic order quantity model is to find a level of inventory and orders in which the inventory maintenance costs and order costs are as low as possible.