EOQ should be used if you use a make-to-order strategy and the customer specifies that the entire order be delivered in one shipment.

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EOQ (Economic Order Quantity) is typically used in a make-to-stock strategy where there is recurring demand for a product. In a make-to-order strategy, the production is initiated only when there is a specific order. Therefore, the concept of ordering a specific quantity at a certain time (EOQ) may not be applicable. Also, if the customer specifies that the entire order be delivered in one shipment, it may not be feasible to use EOQ as the entire order has to be produced and shipped together.

EOQ Should Be Used If You Use a Make-To-Order Strategy