Digital Education

Quantitative Business Decisions

Business Intelligence / Analytics

Economic Order Quantity

Inventory decisions

Examples & techniques

Economic Order Quantity (EOQ)

Inventory Decisions by the numbers.


Introduction

There is a trade-off between Holding Costs and Ordering Costs. The equalibrium of these two costs represents the lowest possible Total Cost for an organization. Inventory is an organizations scarce resource of money, sitting on a shelf. Ordering Costs are shipping and handling costs typically paid to a 3rd party ventor.

Learning Objectives

  1. Define Economic Order Quantity (EOQ)
  2. Describe how EOQ is used in both the supply chain and production
  3. Understand how the functionality of EOQ

To Do List

  • Read - Chapter 12
  • Welcome Video
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Economic Order Quantity

Learning Objectives

  1. Define Economic Order Quantity (EOQ)
  2. Describe how EOQ is used in both the supply chain and production
  3. Understand how the functionality of EOQ

To Do List

  • Continue Reading - Chapter 12
  • Basic EOQ Video
  • Quiz 1 Basic EOQ
  • Answer form on Moodle
    • Top of Page

    Economic Order Quantity Translations

    Learning Objectives

    1. Discover how to use EOQ Translations
    2. Describe how to use translations in EOQ problem

    To Do List

    • Read - Chapter 12
    • EOQ Translations Video
    • Quiz 2 EOQ Translations
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    Economic Order Quantity Production

    Learning Objectives

    1. Discover how to use EOQ for production of goods
    2. Describe how to use translations in EOQ problem

    To Do List

    • Read - Chapter 12
    • EOQ Production Video
    • Quiz 3 EOQ Production
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    Economic Order Quantity Back Order

    Learning Objectives

    1. Discover how to adjust EOQ for Back Orders
    2. Describe how to use Back Orders in EOQ problem

    To Do List

    • Continue Reading - Chapter 12
    • EOQ Back Order Video
    • Quiz 4 Back Order
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    Economic Order Quantity Without Cost

    Learning Objectives

    1. Discover how to adjust EOQ for Inventory that is low-cost and used across many products
    2. Describe how to use W/O cost in EOQ problem

    To Do List

    • Continue Reading - Chapter 12
    • EOQ With/Out Cost Video
    • Quiz 5 With-Out Cost
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    EOQ - Quantity Discounts

    Learning Objectives

    1. Discover how to adjust EOQ for price breaks
    2. Determine if a quantity discount wil save your organization money

    To Do List

    • Continue Reading - Chapter 12
    • EOQ Quantity Discounts Video
    • Quiz 6 Quantity Discounts
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    EOQ - Safety Stock

    Learning Objectives

    1. Discover how to adjust EOQ for the probability of a stock-out
    2. Determine how to balance carrying extra inventory and maximizing customer satisfaction

    To Do List

    • Still Reading - Chapter 12
    • EOQ Safety Stock
    • Quiz 7 Safet Stock
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    EOQ - Single Period

    Learning Objectives

    1. Discover how to adjust EOQ for maximum profit of a perishable good or service
    2. Determine how to balance under capacity and over capacity

    To Do List

    • Continue Reading - Chapter 12
    • EOQ Single Period Video
    • Quiz 8 Single Period
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