economic order quantity

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economic order quantity

[‚ek·ə′näm·ik ′ȯr·dər ‚kwän·ə·dē]
(industrial engineering)
The number of orders required to fulfill the economic lot size.
References in periodicals archive ?
The quick changeover equipment has allowed Caterpillar to reduce economic order quantities on the track shoe fabrication operation to 200 to 400 pieces, as opposed to the 800 to 1200 parts that would be run using the old system.
Examples of models commonly used in business decision making are those used to calculate economic order quantities (EOQ) for inventory items, financial models for analyzing returns on investments, forecasting models for estimating the demand for different products, and a wide range of optimization models for maximizing (or minimizing) costs in a variety of situations.
WHAT: An examination on how to set economic order quantities that strike a balance between operational efficiency and inventory reduction.
We obviously intend to order parts and components in economic order quantities in order to minimize production costs.
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