[Code of Federal Regulations]

[Title 41, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR101-27.102-3]



[Page 118]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

          CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

 

PART 101-27_INVENTORY MANAGEMENT--Table of Contents

 

                  Subpart 101-27.1_Stock Replenishment

 

Sec. 101-27.102-3  Limitations on use.



    (a) When there are no limiting factors which preclude its 

application, such as space or budgetary limitations, the basic EOQ 

techniques shall be used.

    (b) When a space, personnel, or budgetary limitation precludes 

application of the basic EOQ technique, a modification of the technique 

may be made provided the modification produces:

    (1) The fewest possible replenishments for a given level of 

inventory investment; or

    (2) The lowest possible level of inventory investment for a given 

number of replenishments.

    (c) When quantity purchase discounts or volume transportation rates 

will produce savings greater than the increased variable costs involved 

in procurement and possession, the economic purchase quantity (EPQ) 

principle shall be used as described in the GSA Handbook. The Economic 

Order Quantity Principle and Applications.



[29 FR 15997, Dec. 1, 1964, as amended at 31 FR 9541, July 14, 1966; 41 

FR 3858, Jan. 27, 1976]