#economicorderquantity

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Economic Order Quantity

In a more simplified term, EOQ is the amount of inventory to be ordered at one time for purpose of minimizing annual inventory cost📉. Let’s take an example to calculate the EOQ of RG Electronics where the electronic goods dealer sells 500 television units per year. It costs the shop INR 5000 for every order placed and the holding cost per unit is INR 250. EOQ = square root of (2x (2 x 500 televisions (D) x INR 5000 per order cost (s) / INR 250 holding cost (H)), =142 The economic order quantity (EOQ) of televisions for RG Electronics is 142 units. ✨ Check out more https://roadmapit.com

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EOQ is the economic order quantity in inventory management. It is a formula used to calculate inventory stock level. Check out the complete

Want to know about the EOQ in detail? Economic order quantity is a tool used in inventory management. The benefit of economic order quantity is increased profit. Here is a complete guide on economic order quantity (EOQ).