oboloo Glossary

Eoq Graph

oboloo Glossary

Eoq Graph

Eoq Graph is a business concept that focuses on the economic order quantity (EOQ) principle. Using EOQ, businesses can determine the most efficient amount of inventory to order, based on the balance of ordering costs and holding costs. The approach enables them to minimize costs, optimize their supply chain performance, and maximize profits. By plotting the ordering cost, carrying cost, and total cost onto an EOQ graph, businesses can quickly identify the optimal number of units to buy—that is, the point at which the total cost line reaches its minimum value.