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    Question

    The size of the order for which both ordering and carrying cost are at minimum is known as:

    A Rational order Quantity Correct Answer Incorrect Answer
    B Optimal order Quantity Correct Answer Incorrect Answer
    C Standard Order Quantity Correct Answer Incorrect Answer
    D Economic Order Quantity Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The size of the order for which both ordering and carrying cost are at minimum is known as economic order quantity or E.O.Q. E.O.Q is used in an optimizing stock control system. 

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