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Master the Economic Order Quantity (EOQ) model—how to choose the cheapest order size by balancing ordering cost and holding cost when demand is steady and replenishment is instantaneous. We cover the intuition, the key formulas, and two clean worked examples (tire distributor, bakery). What you’ll learn When EOQ applies (and when it doesn’t) Two solved examples with interpretable numbers Chapters 00:00 Why EOQ matters 00:14 When to use EOQ 00:34 Key formulas 01:03 Example 1 — Tire distributor 03:10 Example 2 — Bakery (with “what if” on H) 06:52 More explanation 07:05 Model assumptions 07:29 Inventory cycle 08:00 Inventory cost elements 09:45 The total annual inventory cost 10:10 The optimal order quantity equation 10:45 Call to action
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