Economic Order Quantity

Definition

EOQ. The amount of orders that minimizes total variable costs required to order and hold inventory.

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The economic order quantity was not an area that I had much interest in and I had my friend do it for me instead.

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You should try and make sure that you make the right economic order quantity so that you don't get more than you need.

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In order to ensure the most cost efficient balance of stock on hand and stock ordered, Business Place, Inc uses the principle of economic order quantity to ensure a perfect balance between holding costs and purchase costs for its top selling products.

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