EOQ Calculator – Inventory

Economic order quantity finds the order size that minimizes the sum of ordering and holding costs. Order too often and setup costs pile up; too rarely and storage eats you. The computation rests on EOQ = √(2 × demand × order cost ÷ holding cost). With annual demand of 10,000 units, 40 per order and 8 per unit to hold: EOQ = √(2 × 10,000 × 40 ÷ 8) = √100,000 ≈ 316 units per order, ≈32 orders a year. Each input you type is substituted the instant you release the key, and the result is expressed in exactly the units or currency you chose.

1. 1

   Step 1

   Start with the primary figures the Economic Order Quantity Calculator asks for.

2. 2

   Step 2

   Your values are substituted into EOQ = √(2 × demand × order cost ÷ holding cost).

3. 3

   Step 3

   Read off the computed result.

4. 4

   Step 4

   Vary one input at a time to see its effect.

• Using unit price as holding cost

• Annualizing wrong

• Ignoring quantity breaks