In operations research and inventory control, the Economic Order Quantity (EOQ) formula is best characterized as what type of model?

Introduction / Context:
The Economic Order Quantity (EOQ) formula determines the order size that minimizes total inventory costs under specific assumptions. Understanding how to classify EOQ helps learners relate it to broader modeling categories used in operations research and supply chain analytics.

Given Data / Assumptions:

• EOQ assumes constant demand and lead time.
• It balances ordering costs and holding costs.
• No stockouts or quantity discounts are assumed in the basic form.

Concept / Approach:

EOQ is an optimizing model because it minimizes a total-cost function. It is deterministic because key parameters (demand, costs) are assumed known and constant. It is also static because the model does not vary over time within its basic formulation—parameters do not change per period in the standard version.

Step-by-Step Solution:

Verification / Alternative check:

Textbooks consistently present EOQ as a closed-form optimum under deterministic, steady-state assumptions—confirming all three classifications.

Why Other Options Are Wrong:

Choosing only one misses the comprehensive characterization of EOQ.

None: Incorrect because EOQ clearly fits these categories.

Common Pitfalls:

Mixing EOQ with stochastic or dynamic models (e.g., newsvendor, time-varying demand) which alter these assumptions.

Final Answer:

All of the above