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

A lot size model that attempts to balance the costs associated with placing individual orders with the costs of carrying inventory. Defined as the square root of: 2 X annual demand X ordering cost divided by inventory carrying cost (as a %) x unit cost.

In fixed order quantity systems, the size of an order that minimises the total inventory cost, under a given set of circumstances, obtained by trade off analysis between the cost of placing an order and the cost of holding stock

That 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.

Method of determining procurement amounts which considers carrying and overhead costs

The optimal size of order to place at which the sum of the order processing costs plus inventory carrying costs result in the minimum total inventory costs.

A fixed-order quantity model that determines the amount of an item to be purchased at one time. The intent is to minimize the combined costs of acquiring and carrying inventory.

The quantity per order (in units) that minimizes the total costs of processing orders and holding inventory.

The optimum number of units/batches to produce or order based on setup costs, demand, inventory value, inventory carrying costs, and production volume.

is the order quantity that minimizes total inventory costs. A total inventory cost is the sum of ordering, carrying and stock-out costs.

An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.

the 'right' quantity ordered that minimizes ordering and storing costs.

The most economical quantity to purchase, balancing ordering costs with carrying costs.

The result of a calculation that determines the most cost effective quantity to order (purchased items) or produce (manufactured items). The formula basically finds the point at which the combination of order cost and carrying cost is the least. The standard formula is EOQ = Square Root [2 * (Annual Usage) * (Order Cost) / (Annual Carrying Cost/unit)].

The right amount to order to optimize the trade-off between volume discounts or similar quantity incentives, and the carrying cost of inventory.

An inventory model that determines how much to order based upon the minimization of the total costs of ordering and holding the items ordered.

The size of an inventory order determining by the amount that will meet customer service levels while minimizing total ordering and holding costs.

Economic order quantity (also known as the Wilson EOQ Model or simply the EOQ Model) is a model that defines the optimal quantity to order that minimizes total variable costs required to order and hold inventory.