An inventory decision model used to calculate the optimum amount to order, balancing the fixed costs of ordering and receiving against the carrying cost of inventory and sales. Utilized in both manufacturing and retail inventory management.
A decision model that determines the optimum order size for purchasing or manufacturing an item in stock, balancing ordering and holding costs.
The Economic Order Quantity (EOQ) is a formula used by businesses to determine the optimal order quantity that minimizes the total inventory costs associated with ordering and holding stock.
An integral part of financial analysis, financial modelling involves creating representations of the financial performance of a business or project over time. These models aid in decision-making by simulating different scenarios and outcomes based on historical data and assumptions.
