economic order quantity


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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 ?
9 billion for the Virginia-class submarine program, which is $698 million more than the budget request, in order to provide additional economic order quantity funding and advance procurement for the next block of ships.
You can get more for your money with multi-year buys, or to a lesser extent, block buys and procuring at the economic order quantity.
An inventory control system is the set of guidelines and controls that monitors levels of inventory and regulates what levels should be maintained, when stock should be restocked, and what should be the economic order quantity.
Conventional Wisdom: Economic Order Quantity should be used whenever possible because it is optimal
11] considered the economic order quantity of the retailer under delay in payments depending on the ordering quantity.
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).
The classical economic order quantity (EOQ) model seeks to find the balance between ordering cost and carrying cost with a view of obtaining the most economic quantity to procure by the distributor.
Economic Order Quantity technique, developed nearly a hundred years ago (Harris, 1915) has enjoyed an enormous following over the past century and many an industry leader has benefited by following EOQ principles in their inventory management.
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?
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