Should You Implement EOQ Without Knowing the Assumptions of EOQ?

Executive Summary EOQ is built on a series of assumptions that are most often unquestioned. We answer the question of what are EOQ assumptions. Video Introduction: What Are the Assumptions of EOQ? Text Introduction (Skip if You Watched the Video) EOQ is most often presented as a method of performing supply planning, but it is…

When Can EOQ Be Implemented?

Executive Summary The question of when can EOQ be implemented is critical to the appropriate planning of products. We cover when to apply EOQ versus forecast based planning. Video Introduction: When Can EOQ Be Implemented? Text Introduction (Skip if You Watched the Video) When can EOQ be implemented is critical to determine when to use…

What Specific EOQ Model Types Can Practically Be Used?

Executive Summary The question of what EOQ model types can be used is critical to a deeper understanding of EOQ. We cover multiple EOQ model types. Introduction There are many different types of EOQ models. A few different EOQ models include EOQ with discount and EOQ with perishability. Many more types of EOQ have articles…

How to Best Calculate Ordering Cost for EOQ

Executive Summary We cover the Economic Order Quantity formula and the applicability of the Economic Order Quantity and EOQ and perishability and quantity discounts. EOQ can be calculated for both production and procured products. Introduction: The Origins of the Economic Order Quantity Economic order quantity (EOQ) is one of the oldest formulas in inventory management,…

How to Best Understand the Limitations of the Economic Order Quantity Formula

Executive Summary The Economic Order Quantity (EOQ) usually is not analyzed before using it. We cover the limitations of EOQ. Video Introduction:¬†Standard EOQ Formula Text Introduction (Skip if You Watched the Video) The EOQ formula is used to determine order batching. Order batching is a method of setting the order size such that it is…

How to Best Figure Out Ordering Quantity and Ordering Frequency

Executive Summary Ordering quantities are often the focus of supply chain planning as they directly impact the frequency with which things are done. We cover determining ordering quantities. Introduction While not often discussed, ordering frequency is linked to all other subjects frequently discussed in supply chain planning. Order frequency can be viewed as the inverse…

How to Understand the History of the Economic Order Quantity Formula

Executive Summary This is an introduction to the economic order quantity formula. We analyze Ford W. Harris’ original economic order quantity paper. We cover using the economic order quantity in production planning systems. Introduction Economic order quantity (EOQ) is one of the oldest formulas in inventory management. EOQ was first developed by an unlikely person…

How to Best Use the Economic Order Quantity Calculator

Executive Summary This is an introduction to the EOQ calculator or EOQ formula calculator. We cover how to calculate Economic Order Quantity. We cover the¬†Economic Order Quantity Calculator, EOQ Formula Calculator, and a Quantity Discount Model. Video Introduction: EOQ Calculator or EOQ Formula Calculator Text Introduction (Skip if You Watched the Video) Economic order quantity…

Setting the Right Inventory Carry Cost Percentage

Executive Summary Inventory carry cost is a controversial topic because of the assumptions. We cover how to set the inventory carry cost properly. Video Introduction: Setting the Right Inventory Carry Cost Percentage Text Introduction (Skip if You Watched the Video) Inventory carry cost is necessary for the supply chain as it allows a company to…