Economic Order Quantity
Economic Order Quantity is the order quantity that minimizes total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models. The framework used to determine this order quantity is also known as Wilson EOQ Model or Wilson Formula.
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