EOQ (Economic Order Quantity)
Category: Inventory
Also searched as: Economic order quantity
Definition (plain English)
Economic Order Quantity is a planning formula that estimates an order size balancing ordering cost, holding cost, and demand.
Why it matters commercially
EOQ can help frame replenishment, but importers must adapt it for MOQ, shelf life, lead time, container fill, cash limits, and supplier price breaks.
Example
EOQ suggested 1,200 units, but the importer ordered 2,400 because the MOQ and pallet configuration made the lower quantity more expensive per sellable unit.
Common mistake
Using EOQ as an automatic PO quantity without checking MOQ, freight economics, expiry risk, safety stock, and working capital.
Use this in CommerceKit
Target Buy Price Calculator
Use tool →Pallet & Container
Use tool →MOQ & Shelf Life
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