EOQ

Definition

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

Use EOQ in a sentence

You should try to be efficient with your EOQ so that you do not spend to much time on things that aren't necessary.

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Once they identified their EOQ, they could then determine the amount of inventory they needed to have on hand to minimize their total costs.

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Every rational inventory manager should start from an EOQ when deciding inventory, but must take into account 'zero inventory' principles for some production schedules.

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