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.