Question

Decisions on determining a company's optimum inventory levels have been significantly influenced by _________________.

Answer 1

Decisions on determining a company's optimum inventory levels have been significantly influenced by

Management is the decision.

Answer 2

The Economic Order Quantity

Explanation:

• We can say Economic Order Quantity is the number of units that a company should add to inventory with each order in order to reduce total inventory expenditures such holding charges, order fees, and shortage penalties.

• While EOQ is used as part of a continuous review inventory system in which the level of inventory is monitored at all times and a fixed quantity is ordered each time the inventory level reaches a specific recorder point.