A common supply chain management tool is a calculation performed by supply chain professionals called the economic order quantity (EOQ).Knowing when to order inventory and how much to order is driven by the EOQ.In your initial response to this discussion, research the EOQ and respond to the following:

• Define the EOQ and what it represents in terms of costs related to inventory stock, ordering, and holding.
• Explain order costwhat are the components and costs associated with it?
• Explain how the EOQ helps supply chain professionals to determine order quantity.
• Discuss why organizations conduct EOQ calculation, what the goal is of the EOQ, and how the EOQ meets the organization's goal (for example,minimizing cost or determining order quantity).
• Finally, discuss the implications of not utilizing the EOQ calculation or other similar inventory formula.