Economic Order Quantity
Economic order quantity is defined as the back order quantity whose inventory costs reduces. Economic order quantity also consists of two types of cost that is ordering cost & carrying cost. Economic order quantity also includes petty expenses like transportation cost etc.
Learning Objective: Definite and explain economic order quantity (EOQ). How is economic order quantity (EOQ) calculated? Definition of EOQ economic order quantity Formula (EOQ formula) Example: Definition and Explanation: Economic order quantity (EOQ) is that size of the order which gives maximum economy in purchasing any