Economic Order Quantity (EOQ) definition

Economic Order Quantity (EOQ) means the purchase quantity that represents the lowest total of the combination of inventory carrying cost plus ordering cost. The purchase quantity when ordering costs and inventory carrying costs are equal.

Examples of Economic Order Quantity (EOQ) in a sentence

  • From a theoretical perspective, the MOQ is closely related to the Economic Order Quantity (EOQ) Model, a key concept in inventory management developed by Ford ▇.