41 CFR 101-27.102-3
§ 101-27.102-3 Limitations on use.
United States · 41 CFR — Public Contracts and Property Management · Status: effective
Cite this
- Citation
- 41 CFR 101-27.102-3, § 101-27.102-3 Limitations on use, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/197510
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Full text
(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.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.