EOQ


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EOQ

(Economic Order Quantity) The most economical quantity of a product that should be purchased at one time. The EOQ is based on all associated costs for ordering and maintaining the product.
References in periodicals archive ?
Had the EOQ been based on the entire 2009 sales it would have been:
The EOQ is the optimal production lot size for the manufacturing segment and the optimal order size for the distribution segment.
Vrat, EOQ models for perishable items under stock-dependent selling rate, European Journal of Operational Research 86 (1995), 281-292.
Two EOQ models have been developed here considering the following;
It is proved that the results reduce to the corresponding results for the standard EOQ model when demand is constant and deterioration approaches zero.
Other than these characteristics, standard EOQ assumptions, such as known and constant ordering and carrying costs, zero lead-time, and no stockouts are applicable.
The remainder of this article gives a brief overview of EOQ theory, to include some of its assumptions.
Chaudhuri, An EOQ model with stock-dependent demand, shortage, inflation and time discounting, International Journal of Production Economics 53 (1997) 171-180.
In contrast, ordering the EOQ whenever a shortfall was identified significantly increased materiel availability with a modest increase in inventory.
The model management subsystem would search its modelbase and select the appropriate EOQ model.