Economics

Economic Order Quantity

Economic Order Quantity

Economic order quantity applies only if demand for something is constant in the year and each and every new order is delivered entirely when inventory gets to zero. Economic order quantity (EOQ) is the order quantity that minimizes the complete inventory holding prices and ordering prices. It is one of several oldest classical generation scheduling models. The framework accustomed to determine this get quantity is generally known as Wilson EOQ Product, Wilson Formula as well as Andler Formula.