What is the full form of EOQ

Question

Accepted Answer

EOQ stands for Economic Order Quantity.

EOQ is a formula used in inventory management to determine the optimal order quantity that minimizes total inventory costs.
It takes into account factors such as demand, ordering costs, and holding costs.
The formula for EOQ is: EOQ = √((2 * demand * ordering cost) / holding cost)
EOQ helps in balancing the costs of ordering too frequently (resulting in high ordering costs) and ordering in large quantities (resulting in high holding costs).
By calculating the EOQ, organizations can optimize their inventory levels and reduce costs.
For example, if a company has a high demand for a particular product, a higher EOQ may be more suitable to minimize ordering costs.
On the other hand, if the demand is low or uncertain, a lower EOQ may be preferred to minimize holding costs.

Accepted Answer

Economic order quantity- minimum order possible like weekly or fornightly

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