2.4 Which of the following statement is correct about Economic Order Quantity (EOQ)?

1. In inventory valuation system, EOQ is the most ideal cost to be incurred in ordering and receiving material from the supplier.
2. In inventory management system, EOQ is the minimum order quantity that minimizes the total holding cost and ordering costs.
3. In inventory valuation system, EOQ is the most ideal cost to be incurred in handling the material received from the supplier.
4. In inventory management system, EOQ is the order quantity that minimizes the total holding cost and ordering costs.