economic lot size


Also found in: Acronyms.

economic lot size

[‚ek·ə′näm·ik ′lät ‚sīz]
(industrial engineering)
The number of units of a product or item to be manufactured at each setup or purchased on each order so as to minimize the cost of purchasing or setup, and the cost of holding the average inventory over a given period, usually annual. Also known as project life.
References in periodicals archive ?
Optimizing the economic lot size of a three-stage supply chain with backordering derived without derivatives.
A joint economic lot size model for raw material ordering, manufacturing setup, and finished goods delivering.
1997, Economic lot size model for price-dependent demand under quantity and freight discounts, International Journal of Production Economics, 48(2), 141-155.
Without the existence of the freight rate anomaly, the economic lot size for both plant locations would be 505 units per shipment with a resulting total annual purchase cost of $108,995 and $108,965 for plants I (Falls Church, Virginia) and II (Columbus, Ohio), respectively.
Often the rate of deterioration is low for many items and there is scarcely any need to consider the deterioration in the determination of economic lot sizes.
With the trend to JIT and trying to get down to economic lot sizes of one, having to batch parts and move them from one operation to another certainly creates longer lead times.