WEBVTT 1 00:00:02.280 --> 00:00:03.730 Order too often, and admin 2 00:00:03.730 --> 00:00:05.800 and freight costs stack up. 3 00:00:05.800 --> 00:00:07.690 Order too rarely, and capital 4 00:00:07.690 --> 00:00:09.400 sits idle on the shelf. 5 00:00:09.400 --> 00:00:11.540 Economic Order Quantity finds the 6 00:00:11.540 --> 00:00:13.100 exact point where these two 7 00:00:13.100 --> 00:00:15.290 costs balance, the lowest-cost 8 00:00:15.290 --> 00:00:16.650 order size for parts 9 00:00:16.650 --> 00:00:18.300 that move predictably.