Economic Order Quantity Funds
From Knowledge base
Economic Order Quantity Funds are funds that are available on multiyear procurements that facilitate reduced costs through cost reduction actions. By demonstrating that the use of funds today, will result in future cost reductions on a contract, the customer may be willing to provide funds for those future reductions. An example of cost reduction actions that may result in the awarding of EOQ Funds are:
- Advance receipt of critical material to be held in stores
- Aggregating/accerlerating build life cycles to increas efficiencies
- Technology refresh, replacing component parts with new technology
- Technology refresh, replacing componenet parts with more cost effective parts
- Tooling and Equipment Upgrades
- Manufacturing and Engineering Process Improvements
- Continuous Improvement and Continuous Improvement plan
