Decision model to calculate optimal quantity of inventory to be ordered is called

A. efficient order quantity

B. economic order quantity

C. rational order quantity

D. optimized order quantity

Answer: Option B

Solution(By Examveda Team)

Decision model to calculate optimal quantity of inventory to be ordered is called economic order quantity. Economic Order Quantity (EOQ) is a production formula used to determines the most efficient amount of goods that should be purchased based on ordering and carrying costs.