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What is Min Batch Quantity or Min Base quantity (more popularly called MBQ) and how is it applied in retailing

I need to know the fundamental principle behind using MBQ and its application into retailing (inventory and sourcing etc)

http://en.wikipedia.org/wiki/Production%...


Economic Batch Quantity (EBQ), also called Optimal Batch Quantity is a measure used to determine the quantity of units that can be produced at minimum average costs in a given batch or production run.

There is a move away from a MBQ. The problem with MBQ is that it is suboptimal, it tries to optimize the quantity within a batch based on a small part of the product delivery process and a move to built to order manufacturing and just in time delivery . "Lean" Powerful retailers now insist on rock-bottom prices and refuse to carry inventory, expecting manufacturers to provide rapid and frequent replenishment of retail products based on real-time sales

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