Question

Which of the following information is NOT needed to find Economic order Quantity (EOQ)?

• A. Annual demand
• B. Ordering cost
• C. Carrying cost
• D. Profit margin

Hint:

When calculating EOQ, focus on demand, ordering cost, and carrying cost, while excluding profit margin from the calculation.

Answer 1

The Correct Option is D

Economic Order Quantity (EOQ) is determined using the annual demand, ordering cost, and carrying cost. The profit margin is not a factor in calculating EOQ.