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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With E
  5. Economic Order Quantity

Economic Order Quantity

Definition of 'Economic Order Quantity'

The quantity of inventory items (e.g. raw materials) to order in each occasion which minimises the combined costs of ordering and holding stock.

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Related Terms

EOQAt Best OrderLimit OrderAdjustment, Price and QuantityEquilibrium priceLong-Run EquilibriumMarginal Rate of SubstitutionShort-Run EquilibriumEconomic ProfitEconomic RiskEndogenous GrowthEPEVABill of ExchangeGTCLead TimeMatched Bargain Trading SystemAverage CostBoard LotBudget Share

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