Decision aids
EOQ vs alternatives
EOQ isn’t the answer to every inventory question. Five competing policies cover most of the "is EOQ even the right tool here?" decision space. Each compare below ends with a one-line rule for which to pick.
The five compares
- EOQ vs JITWilson Q* batching vs just-in-time pull. The boundary is setup-cost-to-holding-cost ratio.
- EOQ vs MRPEOQ for independent demand, MRP for dependent. Use EOQ as the lot-size rule inside the MRP run.
- EOQ vs Min/MaxContinuous-review (s, Q) with Q = Q* vs simple two-bin Min/Max. EOQ wins on cost; Min/Max wins on simplicity.
- EOQ vs NewsvendorEOQ for repeating orders; Newsvendor for single-period decisions (apparel season, perishable batch).
- MOQ vs EOQSupplier-imposed minimum vs buyer-optimal. When MOQ binds, EOQ tells you the cost of the constraint.