Economic Order Quantity, Economic Lot Size

EOQ stands for Economic Order Quantity, and is a method for lot sizing, referring to the-lowest-cost order quantity with order cost and inventory carrying cost well-balanced. In MRP, EOQ is seen as a scheme for lot sizing, where lot sizing is performed based on the calculated Economic Order Quantity by the same way as Fixed Order Quantity. For how to calculate EOQ and how to perform lot sizing, see "Economic Lot Size" and "Fixed Order Quantity", respectively.


Related term: Lot Sizing,Fixed Order Quantity FOQ