Question 1

Is EOQ still relevant with modern supply chains?

Accepted Answer

Yes. While JIT and lean manufacturing reduce the need for large batches, EOQ still provides the baseline economic trade-off. Modern adaptations include incorporating quantity discounts, variable lead times, and multi-item joint replenishment. Even Amazon uses EOQ variants for replenishment decisions.

Question 2

What if my demand is not constant throughout the year?

Accepted Answer

For seasonal or variable demand, use periodic EOQ (recalculate quarterly), the Silver-Meal heuristic, or dynamic lot-sizing methods like Wagner-Whitin. However, if demand coefficient of variation is below 0.2, standard EOQ remains a good approximation.