economic order quantity

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

Economic order quantity (EOQ)

The order quantity that minimizes total inventory costs.

Economic Order Quantity

The number of orders a brokerage receives and must fill that minimizes its obligation to keep inventory. The economic order quantity reduces the brokerage's costs to the least possible level.

economic order quantity

References in periodicals archive ?
Given an arbitrary price (and corresponding demand), the retailer's only strategy is to minimize his inventory ordering and holding costs by using the EOQ model.
Philip, An EOQ model for items with weibull distribution deterioration, AIIE Transactions, 5(1973), 323-326.
Choudhuri (1995), An EOQ model for deteriorating items with linear time-dependent demand rate and shortages under inflation and time discounting, Journal of the Operational Research society, 27, 213-224
However, the EOQ model can be modified to reflect many of these more complicated issues.
Until a few years ago, the EOQ model was used to calculate stock levels and place orders, while the forecasts used to calculate the levels and reorder point were based solely on historical demands.
Chand and Ward (1985) analyzed Goyal's problem under assumptions of the classical EOQ model, obtaining different results.
Zhou, An optimal EOQ model for deteriorating items with two warehouses and time varying demand, Mathematica Applicata 10 (1998), 19-23.
Recall that the EOQ model assumes constant, steady demand.
1997, An EOQ model for deteriorating items with a linear trend in demand and shortages in all cycles.
It is proved that the results reduce to the corresponding results for the standard EOQ model when demand is constant and deterioration approaches zero.
An EOQ model for deteriorating items with time varying demand and partial backlogging.