# In the calculation of the EOQ, why do we take the total carrying cost on half the value of EOQ,...

## Question:

In the calculation of the EOQ, why do we take the total carrying cost on half the value of EOQ, and not on the total annual consumption?

## Economic Order Quantity:

The economic order quantity (ECQ) model is a model of inventory management. The model helps business determine the optimal quantity per order in order to minimize the total cost of managing inventory.

## Answer and Explanation: 1

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View this answerIn the economic order quantity model, the decision maker tries to minimize the total cost, which is the sum of order cost and holding cost (or...

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Chapter 13 / Lesson 3Learn about inventory management. Understand what inventory management is, identify the main inventory management techniques, and examine its importance.

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