Economic Ordering Quantity (EOQ) is an inventory ordering model that aims to minimize the total cost associated with acquiring and storing inventory items. It is a classic inventory optimization model which considers trade-offs between ordering costs, purchasing costs, and holding costs in order to determine the optimal order quantity for each item. This approach helps businesses manage inventory levels more efficiently, by focusing on optimizing the average inventory level over time rather than trying to anticipate when individual orders need to be placed. In addition, the EOQ model can serve as an important tool for managers looking to make investment decisions when it comes to inventory ordering policies.