The Economic Order Quantity (EOQ) Formula Requires the Calculation of Holding

Multiple Choice

The economic order quantity (EOQ) formula requires the calculation of holding costs and ordering costs. Determine whether the following costs are items that should be included in holding costs,
Ordering costs or should not be included at all. The cost associated with a 'stock out' should be
Included in:

A) Holding cost
B) Ordering cost
C) Should not be included