EOQ

Economic Order Quantity

A lot size model that attempts to balance the costs associated with placing individual orders with the costs of carrying inventory. Defined as the square root of: 2 X annual demand X ordering cost divided by inventory carrying cost (as a %) x unit cost

EOQ

Economic Order Quantity

A lot size model that attempts to balance the costs associated with placing individual orders with the costs of carrying inventory. Defined as the square root of: 2 X annual demand X ordering cost divided by inventory carrying cost (as a %) x unit cost