What term refers to the order quantity that minimizes inventory cost per unit time?

The term that describes the order quantity which minimizes inventory cost per unit time is known as Economic Order Quantity (EOQ). EOQ is a crucial concept in inventory management and supply chain management. It is a formula used to determine the optimal order size that a company should purchase in order to minimize the total costs associated with inventory, which includes holding costs, order costs, and stockout costs.

By calculating EOQ, businesses can identify the ideal amount of inventory to order, which helps in reducing excess stock and preventing overstocking, thus allowing for better cash flow management and reduced operational costs. The formula takes into account factors such as demand rate, ordering costs, and holding costs, thereby providing a comprehensive approach to inventory management.

The other terms listed do not pertain to the concept of economic order quantity and are not recognized in inventory management. Therefore, understanding EOQ is essential for effective inventory control and ensuring that a business operates efficiently without incurring unnecessary costs.