Supply Chain
Yarn is bought by weight and loses moisture on the shelf, so holding it costs more than interest alone.
— kg
Batch size minimising ordering plus holding cost
EOQ assumes steady demand and instant replenishment, and seasonal yarn sourcing satisfies neither — a season with a demand peak and a long lead time needs a build-ahead plan, not a reorder quantity, and EOQ is then only a sanity check on batch size. The bulk advantage compares one discount threshold against the EOQ and ignores the shade-lot risk that large batches carry, which for dyed or melange yarn frequently outweighs the discount. Moisture loss is treated as pure shrinkage of saleable weight; where yarn is sold on conditioned weight the term belongs at a different value or not at all.
Economic Order Quantity for Seasonal Yarn Sourcing — free, with the formula and a worked example, at Textile School.