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The clearest plain-English walkthrough of EOQ for a founder who never took a supply-chain class, and it makes the case, with numbers, that most founders order 30-50% off the optimal quantity, which is real money left on the table.
Economic Order Quantity: Formula, Calculation, and Examples
From Aspire Blog by Aspire
- EOQ balances ordering cost against inventory carrying cost
- Running the actual formula often reveals orders are 30-50% off optimal
- The correction typically pays for itself within a few months via freed-up cash
