economic order quantity


Also found in: Financial, Encyclopedia, Wikipedia.

economic order quantity

That quantity derived from a mathematical technique used to determine the optimum (lowest) total variable costs required to order and hold inventory.
References in periodicals archive ?
This procurement includes economic order quantity (EOQ) advance procurement (AP) funding for production related materials and interim repair parts for the six multi-year procurement ship sets.
So the problem is seen more frequently in the factory, is lack of a scientific system based on production management techniques for the economic order quantity.
He explains how companies have forgotten who their customers are and how to implement Lean business practices during an economic downturn, and challenges the Economic Order Quantity model by identifying eight deadly wastes (overproduction, overprocessing, waiting, motion, transportation, inventory, defects, and wasted human potential).
A properly sized economic order quantity buy for launch services enables continued success and reliability, maximizes cost reduction, allows opportunity for new entrants as they mature, and stabilizes a critical supplier base and workforce," said Gass.
That assignment was an introduction to the wider and more complex theme of the economic order quantity concept (EOQ).
Using the economic order quantity (EOQ) model, determine the inventory order quantity that would provide the lowest total inventory ordering, and holding cost?
Mitra et al [13] presented a simple procedure for adjusting the economic order quantity model for the case of increasing or decreasing linear trend in demand.
Economic order quantity, Young noted, is another business practice that produces savings and gives program managers a chance to efficiently execute their programs.
He includes a comprehensive glossary and an appendix containing information on economic order quantity, reorder points and safety stock for MRO inventory.
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.
Full browser ?