Although attempts have been made in the past to modify the economic or
der quantity (EOQ) model to the maximization of return on investment (
ROI), they either failed to take the whole enterprise into account, or
reached the erroneous conclusion that no adaptation is required for t
hat purpose. In this paper we develop the company-wide ROI maximizing
order quantity, and show that it is bounded from above by EOQ and that
it does not necessarily follow the square root of the demand level. I
n fact, there are conditions under which the order quantity is constan
t, regardless of the demand level, or even decreasing with demand. It
is important to note that such a policy, if undertaken by many firms,
will reduce the economic accelerator, and thus reduce the volatility o
f business cycles.