Proper Use of the Economic Order Quantity Principle Can Lead to More Savings

Abstract

The economic order quantity (EOQ) principle is a mathematical device for arriving at the purchase quantity that will result in the lowest total costs for ordering and holding inventory to meet expected supply requirements. The principle's two main elements are the value of requirements and the cost factors. The cost factors are based on the cost for each replenishment order and for each additional dollar's worth of stock.

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Document Details

Document Type
Technical Report
Publication Date
Jun 21, 1974
Accession Number
AD1172905

Entities

People

  • Elmer B. Staats

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Advanced Electronics
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Accuracy
  • Air Force
  • Army Aviation
  • Congress
  • Contracts
  • Department Of Defense
  • Governments
  • House Of Representatives
  • Inventory
  • Inventory Control
  • Investments
  • Logistics
  • Marketing
  • Money
  • Procurement
  • Replenishment
  • Test And Evaluation
  • Transportation
  • United States

Readers

  • Logistics and Supply Chain Management.
  • Systems Analysis and Design