economic order quantity


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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

see STOCKHOLDING ( INVENTORY) COSTS.
References in periodicals archive ?
(1991) An economic order quantity model with demand-dependent unit production cost and imperfect production process, IIE Transactions.
Ko, Economic order quantity models for ameliorating/deteriorating items under inflation and time discounting.
* Due to the fact that using economic order quantity model may lead to significant cost reduction, it is suggested that the management of the company use the presented suggestion to plan inventory in control system and apply the commands required in this field.
Determination of the economic order quantity under the condition of uncertainty.
Where: Q = the economic order quantity and F = the freight cost per shipment (regardless of size)
[7] Weiss, H.J., 1982, Economic Order Quantity models with nonlinear holding cost, European Journal of Operational Research, 9, 56-60.
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.
Both employ a reorder point (ROP) which is the point to order stock to replenish the demand levels, and an economic order quantity (EOQ), or the minimum amount ordered.
Independent demand is discussed and variations of the economic order quantity model are illustrated.
Early techniques for determining optimal order quantities for each item were based on computing the economic order quantity, which is the quantity that minimizes the total ordering plus holding costs for each item at each location.
The data warehouse holds the standards for the product, geography, time hierarchy, rules and workflow, as well as definitions for measures and calculations like activity-based costing, economic order quantity, gross margin and profit.
The sections on decision making ignore economic order quantity, learning curves, performance evaluation, budgeting with uncertainty, and activity-based budgeting.

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