Which technique is employed to determine optimal order quantities and timing to minimize costs?

Inventory modeling is employed to determine optimal order quantities and timing to minimize costs. This technique involves using mathematical approaches and statistical analysis to establish how much inventory should be ordered and when to reorder in order to maintain sufficient stock levels while minimizing holding and ordering costs. By applying various models, such as the Economic Order Quantity (EOQ) and Just-In-Time (JIT) inventory systems, businesses can effectively manage inventory levels to prevent excess stock and stockouts, thereby reducing overall operational costs.

The other options have their own specific purposes: break-even analysis evaluates the point at which total revenue equals total costs, helping businesses understand profitability but not directly related to inventory management. Demand forecasting predicts customer demand to inform inventory levels but does not specifically address the timing and quantity of orders. Cost-benefit analysis compares the costs and benefits of different decisions to evaluate their financial viability but is not an inventory management technique. Thus, inventory modeling is the most suitable choice for minimizing costs associated with order quantities and timing.