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Production Order Quantity (POQ) Model
An inventory management model that determines the most economical quantity of a product to order or produce, balancing setup costs with holding costs.
EOQ Problem
Economic Order Quantity (EOQ) refers to the ideal order quantity a company should purchase to minimize inventory costs including holding, shortage, and order costs.
Lot Size
The quantity of items that are processed, produced, or ordered as a batch.
Cycle Counting
An inventory auditing process where a small subset of inventory is counted on a specific day without having to count the entire inventory.
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