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The Lean Anthology
book

The Lean Anthology

by Rebecca Goldberg, Elliott N. Weiss
November 2014
Beginner to intermediate content levelBeginner to intermediate
248 pages
6h 24m
English
Productivity Press
Content preview from The Lean Anthology
172 THE LEAN ANTHOLOGY
THE IMPACT OF COST ESTIMATES
ON PURCHASING DECISIONS
Economic Order Quantity (EOQ)
The EOQ is the best (typically, most eco-
nomical) amount of something that should
be ordered at one time. As we learned in
“Peter Goes Shopping” in Chapter 14,
EOQ is a measurement that represents a
judgment—a determination as to the opti-
mal amount of a process input, product,
or component material that should be
ordered at one time. It involves an assess-
ment that balances the cost of holding
inventory against the cost of obtaining it,
which is sometimes described as the setup
cost. This judgment should be made in
Lean Takeaways
A Lean cu ...
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Publisher Resources

ISBN: 9781482246797