Ordering a fixed number of items every time an inventory level falls to a predetermined point is called the ___.

A) inventory control number
B) quality control paradox
C) economic order quantity
D) breakeven quantity
E) fixed quantity inventory

Economic Order Quantity

A formula used to determine the optimal quantity of inventory to order that minimizes total inventory costs.

Inventory Level

The quantity of goods, materials, or products that are held by a company at a given time, used to meet demand without incurring excess or shortage.

Fixed Quantity Inventory

A replenishment strategy for inventory management where a constant quantity of an item is ordered whenever stock falls to a predetermined level.