EOQ
Abbreviation with 2 meanings
| Stands for | Economic order quantity |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Writing & Everyday |
EOQ has two meanings. It stands for Economic order quantity (logistics, supply chain & trade) or End of quarter (email and office).
Meanings of EOQ at a glance
| # | EOQ stands for | Context |
|---|---|---|
| 1 | Economic order quantity | Business & Finance › Logistics, Supply Chain & Trade |
| 2 | End of quarter | Writing & Everyday › Email and Office |
1. Economic order quantity
Business & Finance · Logistics, Supply Chain & Trade Abbreviations
Order size that minimizes the combined cost of ordering and holding inventory, calculated as the square root of two times annual demand times cost per order, divided by annual holding cost per unit.
Example: With these ordering and storage costs, the EOQ for filters is about 400 units.
The formula was published by engineer Ford W. Harris in 1913. Its assumptions of steady demand and fixed costs rarely hold exactly, but it remains a staple of operations courses and inventory software.
2. End of quarter
Writing & Everyday · Email and Office Abbreviations
Refers to the last day of a fiscal or calendar quarter, an important deadline for sales targets, financial reporting and budget spending. Sales and finance teams use it heavily.
Example: Sales is pushing to close the three remaining enterprise deals before EOQ on June 30.
Calendar quarters end on March 31, June 30, September 30 and December 31, but companies with fiscal years starting in other months have different EOQ dates. Sales representatives often offer discounts near the end of a quarter to meet quotas. Related shorthands EOM and EOY mark the month and year ends.
Related abbreviations
More logistics, supply chain & trade abbreviations
- DSD – Direct store delivery
- EAN – European Article Number
- EDI – Electronic data interchange
- EEI – Electronic Export Information
- EORI – Economic Operators Registration and Identification number
- ETD – Estimated time of departure
- EXW – Ex Works
- FAK – Freight all kinds
See all 106 logistics, supply chain & trade abbreviations →