Economic Order Quantity (EOQ) Overview

The Economic Order Quantity (EOQ) is the most cost-effective quantity of a product for you to purchase and hold in inventory.

The EOQ calculation considers the product's:

The EOQ is based on approximations. It is an estimate only and one of many factors to consider when determining order quantities.

See Also:

Forecasting Overview

How the System Calculates the Economic Order Quantity

How the System Uses the Economic Order Quantity