Economic order quantity is that quantity at which cost of holding and carrying inventory is:

A. Maximum and equal

B. Minimum and equal

C. It can be maximum or minimum depending upon case to case

D. Minimum and unequal

Answer: Option B

Solution(By Examveda Team)

Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.