EOQ Calculator
Find the Order Quantity That Minimizes Inventory Costs
Enter your annual demand, ordering cost, unit cost, and holding rate to calculate the economic order quantity. See how ordering and holding costs balance at the optimal point.
Demand & Ordering
units
$/order
$/unit
%
Holding cost per unit: $5.00 / year
Results
Economic Order Quantity
490
units per order
Orders / Year
24.5
Cycle Time
14.9
days
Total Cost
$2,449
/ year
Avg Inventory
245
units (EOQ / 2)
Avg Inventory Value
$6,125
at $25.00 / unit
Cost Balance
Annual Ordering Cost$1,225
Annual Holding Cost$1,225
Ordering$1,225
Holding$1,225
Formula
EOQ = √(2DS / H)
D = Demand12,000 units / year
S = Setup Cost$50.00 / order
H = Holding Cost$5.00 / unit
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