Economic order quantity is intended for use with independent demand systems.

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Economic order quantity (EOQ) is a formula used for calculating the optimal order quantity that minimizes the total cost of inventory for items with independent demand, where demand is not dependent on the demand for other items. This means that EOQ is appropriate for use when the demand for a product is unpredictable and fluctuates from one period to another. On the other hand, for products with dependent demand, other inventory management techniques like material requirements planning (MRP) or just-in-time (JIT) may be used.

Economic Order Quantity Is Intended for Use with Independent Demand