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economic

Beyond economic repair (BER)

1) Where the projected cost of repair, normally for a repairable or rotable item, exceeds a management-set percentage of the replacement value of the item concerned.

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Economic stock

1) The sum of the physical stock and the goods ordered but not yet received, minus the goods sold but not yet delivered for which a company carries risk in respect of a drop in price and unmarketability. (Source: ILT Supply-Chain Inventory Management SIG)

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Economic order quantity (EOQ)

1) In fixed order quantity systems, the size of an order that minimizes the total inventory cost, under a given set of circumstances, obtained by trade-off analysis between the cost of placing an order and the cost of holding stock. (Source: ILT Supply-Chain Inventory Management SIG)

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Economic order interval (EOI)

1) In fixed order interval systems, the interval between orders that will minimize the total inventory cost, under a given set of circumstances, obtained by trade-off analysis between the cost of placing an order and the cost of holding stock. (Source: ILT Supply-Chain Inventory Management SIG)

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