why is economic order quantity important 
economic order quantity is important because it helps companies manage their inventory efficiently without inventory management techniques such as these companies will tend to hold too much inventory during periods of low demand while also holding too little inventory during periods of high demand either problem creates missed opportunities the bottom linemanaging inventory is a key component of success for a company having too much inventory results in higher costs that take away from profits due to the cost of maintaining inventory and sometimes having to discard old inventory having too little inventory means a company is losing out on sales by not meeting demand economic order quantity helps ensure companies manage their inventories efficiently 