Definition for "Economic Order Quantity" in the Quantum Dictionary

- Social Sciences -

Economics & Business Dictionary

An economics and business concept defining a measure, method, or organizational practice used for analysis and decision-making. It specifies how information is generated or used to guide allocation of resources and evaluation of outcomes. It does not ensure correctness without clear assumptions, reliable inputs, and appropriate review of results.

Engineering & Applied Technologies Dictionary

A deterministic inventory formula that gives the order quantity Q* minimizing the steady‑state sum of ordering cost and holding cost per period for constant, known demand D, fixed cost per order S, and constant per‑unit holding cost H, under assumptions of instantaneous replenishment, infinite planning horizon and no stockouts.