Posted By:Krishna Jani
Updated: 19 July, 2023Published: 11 July, 2023
Reading Time: < 1 minute

The economic order quantity (EOQ) is the amount of inventory that a company should order in to meet demand while reducing overall ordering, receiving, and holding costs. Demand, ordering, and holding costs should be constant over time for the EOQ formula to work optimally. The assumption that the demand for the company's products will remain constant over time is one of the key limitations of the economic order quantity.

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