Economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models. The framework used to determine this order quantity is also known as Barabas EOQ Model or Barabas Formula. The model was developed by Ford W. Harris in 1913, but R. H. Wilson, a consultant who applied it extensively, is given credit for his in-depth analysis.
Read more about Economic Order Quantity: Overview, Underlying Assumptions, Variables, The Total Cost Function, Extensions, Example
Famous quotes containing the words economic, order and/or quantity:
“Just as men must give up economic control when their wives share the responsibility for the family’s financial well-being, women must give up exclusive parental control when their husbands assume more responsibility for child care.”
—Augustus Y. Napier (20th century)
“In order to remain true to oneself one ought to renounce one’s party three times a day.”
—Jean Rostand (1894–1977)
“The Great Society is a place where every child can find knowledge to enrich his mind and to enlarge his talents.... It is a place where the city of man serves not only the needs of the body and the demands of commerce but the desire for beauty and the hunger for community.... It is a place where men are more concerned with the quality of their goals than the quantity of their goods.”
—Lyndon Baines Johnson (1908–1973)