General Studies · Industrial Engineering and Operations Research
In the Economic Order Quantity (EOQ) model, what is the primary objective?
- 1Minimise the total number of orders placed annually
- 2Maximise the inventory turnover rate
- 3Maximise the service level to customers
- 4Minimise the total cost, including ordering and holding costs✓
Correct answer
Minimise the total cost, including ordering and holding costs
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