Economic Order Quantity  

Economic Order Quantity (EOQ) is a mathematical formula used in inventory management to determine the optimal quantity of goods to order. It aims to minimize the total cost associated with inventory, including ordering costs and holding costs. Here are some key points to understand EOQ:

1. Definition: EOQ is the order quantity that minimizes the total cost of inventory by balancing the ordering cost and holding cost.

2. Ordering Costs: Ordering costs are the expenses incurred each time an order is placed. They include administrative costs, transportation costs, and any other expenses associated with the procurement process.

3. Holding Costs: Holding costs, also known as carrying ____ ______ ______ ___ _______ _____ _____ _________ __________ ______.
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