Procurement & Supply Chain / Replenishment
Economic Order Quantity (EOQ) EOQ
The order size that minimizes the combined cost of ordering and of holding inventory, how much to buy each time, as opposed to when.
The fork, why two teams get different numbers
The first fork is constantly muddled: EOQ is HOW MUCH to order; the reorder point is WHEN.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Wilson EOQ / inventory-theory convention ยท APICS/ASCM CPIM (reference)