Economic order quantity
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![Classic EOQ model: trade-off between ordering cost (blue) and holding cost (red). Total cost (green) admits a global optimum. Purchase cost is not a relevant cost for determining the optimal order quantity.](/Images/godic/202501/10/Eoq_inventory_00010317.png")
Economic order quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering costs. It is one of the oldest classical production scheduling models. The framework used to determine this order quantity is also known as Wilson EOQ Model, Wilson Formula or Andler Formula. The model was developed by Ford W. Harris in 1913, but R. H. Wilson, a consultant who applied it extensively, and K. Andler are given credit for their in-depth analysis.