Economic order quantity is an inventory strategy that aims to balance holding and ordering costs. The Wilson EOQ Model is used to identify the optimal balance and assumes constant order cost, demand rate, lead time, and purchase price. The strategy helps reduce inventory costs and tax debt. Economic order quantity is an inventory strategy that […]

The economic order quantity strategy seeks to balance handling and ordering costs for inventory while ensuring timely customer order fulfillment. The Wilson EOQ Model is commonly used and assumes constant costs, demand rate, delivery time, and purchase price. Minimizing inventory costs can save money and reduce the need for warehouse space. Economic order quantity is […]