Inventory Management Made Simple: EOQ, ROP, EPQ, Cycle Counting, ABC Analysis & More | Chapter 12 - Economic Order Quantity (EOQ) Explained — Optimize Inventory Costs

Continue your Lean Six Sigma and operations management learning with this in-depth overview of Economic Order Quantity (EOQ), a foundational inventory management model used across manufacturing, healthcare, and service organizations. In this video, Operations University instructor Brent Bolton explains how EOQ helps organizations balance inventory availability with cost control. You’ll learn how EOQ minimizes total inventory cost by balancing holding (carrying) costs and ordering (setup) costs, walk through key assumptions of the model, and see step-by-step examples that show how EOQ is calculated and applied in real operational settings. 👉 Get Certified (Lean Six Sigma) Watch the full Lean Six Sigma playlist, then complete your certification at OperationsUniversity.org to earn your Lean Six Sigma certificate. 💰 Advance Your Credentials Certification & Pricing = Yellow Belt $99 • Green Belt $499 • Black Belt $899 — or all 3 for $1,199 (save when purchasing together). Employer packages: Bulk enrollments & reporting available. 💡 What You’ll Learn in This Video: • What Economic Order Quantity (EOQ) is and why it matters • Core assumptions behind the EOQ model • How holding costs and ordering costs interact • Step-by-step EOQ calculation walkthroughs • How EOQ impacts inventory turnover and reorder timing • Practical limitations of EOQ in real-world operations 📢 Call to Action ✅ Subscribe for more Lean Six Sigma & operations content ✅ Visit OperationsUniversity.org to get certified ✅ Share this video with your operations or supply chain team #LeanSixSigma #InventoryManagement #EOQ #SupplyChain #OperationsManagement #ContinuousImprovement