EOQ stands for .a.Essential Order Quantity.b.Economic Order Quantity.c.Economic Output Quantity.d.Essential Output Quantit

Break Down the Problem

1. Identify the meaning of the acronym EOQ.
2. Evaluate each option provided.

Relevant Concepts

• EOQ is a common inventory management formula used to determine the optimal order quantity that minimizes total inventory costs.

Analysis and Detail

1. Option a: Essential Order Quantity - This term is not recognized in inventory management.
2. Option b: Economic Order Quantity - This is indeed a well-known term used in inventory management to minimize costs.
3. Option c: Economic Output Quantity - This term does not relate to inventory management.
4. Option d: Essential Output Quantity - Similarly, this term is not recognized in the context of inventory management.

Verify and Summarize

After evaluating all options, the most accurate interpretation of EOQ is "Economic Order Quantity," which is option (b).

Final Answer

EOQ stands for b. Economic Order Quantity.