EOQ Calculator
Find the optimal order quantity to minimize ordering and holding costs.
From our inventory management guide.
Transport, paperwork, time spent
Storage, spoilage, capital locked
EOQ = √(2 × Demand × Order cost ÷ Holding cost). Order this quantity each time to balance ordering frequency and storage cost.
How to use
- Enter annual demand, order cost, holding cost.
- Get optimal order quantity and order frequency.
Formula
EOQ = √(2 × D × S ÷ H). D=demand/year, S=order cost, H=holding cost/unit/year.
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FAQs
What is EOQ?
Economic Order Quantity—order size that minimizes total ordering + holding costs.
EOQ formula?
EOQ = √(2 × D × S ÷ H). D=annual demand, S=order cost, H=holding cost per unit per year.
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