Calculating Economic Order Quantity with Discount is a method used to determine the optimal quantity of inventory to order at a time to minimize the total inventory-related costs, which include ordering costs, holding costs, and purchasing costs.
This technique is highly relevant in supply chain management, as it helps businesses optimize their inventory levels and reduce their overall costs. The formula for calculating economic order quantity with a discount is a key development in inventory management, providing a more accurate way to account for quantity discounts offered by suppliers.