The-definition.com

Definition

Economic order quantity (EOQ)

Economic order quantity (EOQ) compares the cost of buying an item in various quantities with the cost of carrying those its in stock, and identifies the point at which the cost of the item and the cost to store it are equal.

Category: Economics
References
Share it:  Cite

More from this Section

  • Ad valorem tax
    Ad valorem tax is a tax (such as VAT) which is calculated according to the value of the ...
  • Blanket Insurance
    A Blanket Insurance plan is a unique homeowner's insurance that protects several kinds ...
  • Arithmetic average
    Arithmetic average is a number calculated by adding together several figures and dividing ...
  • Cash Flow
    Cash Flow refers to the physical as well as the virtual movement of monetary resources ...
  • Capacity Utilization
    Capacity Utilization is a company or economy’s capacity represents the maximum amount ...