What Is the Economic Order Quantity? EOQ Formula, Calculator, Example
The calculation also assumes that both ordering and holding costs remain constant. Economic order quantity (EOQ) is the ideal quantity of units a company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage https://accounting-services.net/eoq-quantity-discount/ costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and…