Multiple choice technology packaged enterprise solutions

Economic Order Quantity(EOQ) refers to

  1. Min-Max Planning

  2. Re-order point planning

  3. ATP

  4. All the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Economic Order Quantity (EOQ) is specifically associated with Re-order point planning in Oracle Inventory. It calculates the optimal order quantity to minimize total inventory costs. Min-Max planning uses different logic, and ATP is unrelated.

AI explanation

Economic Order Quantity (EOQ) is the calculated optimal order quantity that minimizes total ordering and carrying costs, and in Oracle Inventory it's specifically used within Reorder Point Planning: when on-hand plus on-order supply falls below the reorder point, the system generates a requisition for the EOQ. Min-Max Planning instead simply orders enough to bring supply up to a defined maximum, without using the EOQ formula. ATP (Available to Promise) is a supply/demand check for order promising, unrelated to order quantity calculation. 'All the above' is wrong since EOQ isn't part of Min-Max or ATP logic.

Keep practicing — related questions