Economic Order Quantity EOQ Inventory Management

#Economic_Order_Quantity
#EOQ_Economical_Order_Quantity
#Operations_Research

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has been refined over time. The formula assumes that demand, ordering, and holding costs all remain constant.