In order to find the lowest cost ordering policy in a quantity discount model, you always compute the EOQ and confirm whether this amount can be purchased for the lowest cost.

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The Economic Order Quantity (EOQ) is calculated to determine the optimal order quantity that minimizes total inventory costs. In a quantity discount model, the EOQ is used as a starting point to evaluate if ordering at this quantity or at a discounted quantity results in the lowest total cost.

In Order to Find the Lowest Cost Ordering Policy in a Quantity