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Dictionary by pitch.dog
Inventory, demand & supply planning · Working

Economic order quantity

Also called: EOQ

ELI5

A modelled order size balancing specified ordering and holding costs.

Used in conversation

“Compare economic order quantity with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Economic order quantity” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 3

Direct term-level sources and supporting source families.