CIPS Exam L3M2 Topic 1 Question 8 Discussion

Actual exam question for CIPS's L3M2 exam

Question #: 8
Topic #: 1

[All L3M2 Questions]

The letters 'EOQ' refer to:

AA person's level of 'emotional intelligence'

BThe notion of there being a best time to order

CThe idea of an optimum quantity to order

DThe idea of an optimum quality to order

Show Suggested Answer

Suggested Answer: C

The Economic Order Quantity is a formula which attempts to calculate the most efficient quantity to order at any given time, by attempting to reconcile the cost of stockholding and the cost of plac-ing an order. This could then have implications for the timing of an order being placed.

The cost of holding stock can be reasonably accurately calculated and agreed with one's peers. However, determining the cost of placing an order can keep colleagues up late into the night, and can be a great topic to liven up a sleepy procurement / finance function.

by Andrew at Apr 25, 2024, 09:21 AM

Limited Time Offer

25%

8 months ago

Do you know what 'EOQ' stands for?

upvoted 0 times

...