Article

Overcoming economic order quantity limitations

Hospital materiel management quarterly 03/1981; 2(3):65-9.
Source: PubMed

ABSTRACT

For years scholars have acclaimed the advantages of using the economic order quantity (EOQ) to establish maximum order volume for supply inventories. A method of EOQ calculation may be developed that is simple enough to be used by the inventory supervisor for all high dollar volume or 'A' items on a periodic schedule. Restricting the application to 'A' items only may reduce the impact on available storage space. The ability to recalculate rapidly may cushion the impact of fluctuations in usage. This method is outlined in this article.

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