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The Economic Order Quantity (EOQ) model is a fundamental concept in inventory management that aims to determine the optimal order quantity which minimizes the total cost of inventory. Inventory management involves balancing two major types of costs: ordering costs and holding costs. Ordering cost refers to the expense of placing and receiving an order, including administrative and transportation expenses. Holding cost refers to the cost of carrying inventory in storage, such as warehousing charges, insurance, depreciation, and opportunity cost of capital. The EOQ model provides a systematic approach to achieve the _________ ____ _________ _____ _______ ________ _______.
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