The QDISCX.lng Model

Economic Order Quantity

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The classic EOQ (Economic Order Quantity) inventory model detailed in every introductory operations research text tells us the optimal order quantity of an item given its demand rate, unit holding cost, and fixed order cost. A common situation not handled by the standard EOQ model is quantity discounts. In this model, we extend the EOQ analysis by allowing for quantity discounts.


Forecasting | Production | Demand Backlog | Inventory | Product Management | Reorder Point | Economic Order Quantity |