economic order的意思|示意

Economic order is a term found in economics that refers to the optimal quantity of a good or service that should be produced in order to maximize efficiency and minimize costs. It is based on the notion of economies of scale, which states that when a business produces more of a product, it ends up having lower production costs.

The economic order quantity (EOQ) is a model used to estimate the optimal order size for a specific product. It seeks to minimize both production and inventory costs. The formula for calculating EOQ takes into account the number of orders placed per year, the fixed cost associated with placing an order, the cost of carrying inventory, and the demand for the good in question.

EOQ is an important concept for businesses to consider when determining the best way to stock their inventory. By using this model, businesses can save time and resources by reducing the frequency of orders and carrying less inventory, while at the same time meeting customer demand.

In summary, economic order is an important concept in economics that can help businesses optimize inventory levels and reduce costs. By understanding the concept and applying the EOQ model, businesses can better manage their costs while still meeting customer demands.