Discuss the economic order quantity method of inventory management and discuss the process of determining economic order quantity

The Economic Order Quantity (EOQ) method is a fundamental concept in inventory management, aimed at determining the optimal order size that minimizes the total inventory costs. It seeks to balance the two primary costs associated with inventory management: the ordering cost and the holding (or carrying) cost. By identifying the right order quantity, businesses can reduce excess inventory and associated costs, while ensuring they have enough stock to meet demand without interruption.

The EOQ model assumes a constant demand for inventory, consistent ordering costs, and fixed carrying costs per unit. It also assumes that replenishment occurs instantly once the inventory level reaches a certain threshold. The objective of EOQ is to determine the quantity of inventory that should be __________ _______ _____ _______ ______ ____ _________ __________ _________ ______ ____.
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