economic order quantity


Also found in: Dictionary, Financial, Wikipedia.

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 ?
1, and where it is possible get to economic order quantity and multi-year/block buys.
As Cecil Bozarth wrote in Economic Order Quantity Model, ordering costs should reflect only true variable costs incurred in placing the orders--not allocated ordering costs (for example, "last year, it cost our firm some $400,000 to place 10,000 orders; therefore the ordering costs are $40 per order or $400,000/10,000").
18] formulated an economic order quantity model for deteriorating item with partially permissible delay in payments linked to order quantity while the deteriorating rate is constant.
Accordingly, the economic value of the order for the material to be calculated, For example, the economic order quantity of copper is calculated as follows.
Determination of the economic order quantity under the condition of uncertainty.
In the paper the way how to deliver 2 classes in the area of inventory management was suggested together with the homework assignment given as an introduction to the theme of the economic order quantity.
Now including the freight cost what is the economic order quantity that would provide the minimum total inventory, holding, and freight cost?
i) Inventory Management Policies: Order Point, Economic Order Quantity, Safety Stock, Balances in Stock and ABC Classification are activities or instruments that are usually developed by such departments as purchasing, logistics or supply chain and they aim at the supply of materials so that they are not depleted according to the calculated Net Requirements.
Mitra et al [13] presented a simple procedure for adjusting the economic order quantity model for the case of increasing or decreasing linear trend in demand.
Economic order quantity, Young noted, is another business practice that produces savings and gives program managers a chance to efficiently execute their programs.
He includes a comprehensive glossary and an appendix containing information on economic order quantity, reorder points and safety stock for MRO inventory.
The standard technique used to minimize total inventory costs is the economic order quantity (EOQ), which is the lot size that minimizes the sum of holding and ordering costs.
Full browser ?