economic order quantity
economic order quantity(EOQ) A decision model, based on differential calculus, that determines the optimum order size for purchasing (sometimes called the economic purchase quantity) or manufacturing (economic manufacturing quantity) an item of stock. The optimum order quantity is that which equates the total ordering and total carrying costs. The formula used is:
where Q is the quantity to be purchased or manufactured, c is the cost of processing an order for delivery, d is the demand in the period for that stock item, and h is the cost of holding a unit of stock. See alsoeconomic batch quantity.
- third-party insurance
- third sector
- threshold agreement
- threshold effect
- threshold price
- throughput accounting
- tick
- tied adviser
- tied loan
- tied outlet
- tie-in
- tiger markets
- tight money
- TIGR
- time and motion study
- time bargain
- time card
- time charter
- time deposit
- time draft
- time fence
- time inconsistency
- time pacing
- time rate
- time-series analysis