economic order quantity

(redirected from EOQ Model)
Also found in: Dictionary, Financial.

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 ?
In Section 3, we construct single objective EOQ model with limited storage capacity.
The essence of the iterative procedure can be roughly explained in the following way: initially an approximate real value is chosen for the order quantity, which is Q from the EOQ model. Then using this value for the optimal order quantity, which can be represented by [Q.sub.0], determine the initial estimate for the reorder point [s.sub.0].
Chaudhuri, "A deterministic EOQ model with delays in payments and price-discount offers," European Journal of Operational Research, vol.
Arora, "Single-source, single-destination coordination of EOQ model for perishable products with quantity discounts incorporating partial/full truckload policy under fuzzy environment," Advances in Intelligent and Soft Computing, vol.
Considering this demand proportion in the EOQ model, the total inventory cost at higher-level facilities is
Salameh and Jaber [16] (S-J model) extended the EOQ model to the situation where all items with a random fraction of defective items go through a 100% screening process, removing out defective items at the end of the screening process.
Parameter Effect on r Effect on Q Purchasing cost c [up arrow] [up arrow] [up arrow] Mean demand rate [lambda] [up arrow] [up arrow] [up arrow] Backorder cost b [up arrow] [up arrow] [up arrow] Stockout cost p [up arrow] [up arrow] [down arrow] Holding cost h [up arrow] [down arrow] [up arrow] Specified service level % [up arrow] [up arrow] [down arrow] Parameter Effect on cost C Purchasing cost c [up arrow] [up arrow] Mean demand rate [lambda] [up arrow] [up arrow] Backorder cost b [up arrow] [up arrow] Stockout cost p [up arrow] [up arrow] Holding cost h [up arrow] [up arrow] Specified service level % [up arrow] [up arrow] TABLE 14: Comparison between proposed (r, Q) policy and EOQ model. Q Expected average cost/cycle time (r, Q) policy 85.1 81.3 EOQ policy 18.7 167.76
Ferguson et al; "An application of the EOQ model with nonlinear holding cost to inventory management of perishables".
Goswami, An EOQ model for deteriorating items under trade credit financing in the fuzzy sense.
Mojibi and Rezaei Nosrati (2009), in their studies of Mazandaran Wood industries concluded that EOQ model can be used to reduce costs.
Sana and Chaudhuri [12] extended an EOQ model by relaxation of the preassumptions related to payments, allowing delay on delivery and discounts.