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Economic Order Quantity

The Economic Order Quantity (EOQ) is a classic deterministic inventory model that identifies the order quantity minimizing the sum of annual ordering and holding costs. Introduced by Ford W. Harris in 1913 and later popularized by R. H. Wilson, EOQ assumes constant demand, fixed cost parameters, and instantaneous replenishment. It remains the foundational benchmark for inventory management in manufacturing, retail, and supply chain contexts where demand is relatively stable and costs are well-characterized.

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Economic Order Quantity (EOQ)

Taksonomisk metoderegistrering · regression-model / operations-research

Harris, F. W. (1913/1990). How many parts to make at once. Operations Research, 38(6), 947–950 (reprint). · DOI 10.1287/opre.38.6.947

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