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Calculates economic order quantity to minimize total inventory costs. Balances ordering costs against holding costs.

Formule

Formula: EOQ = √(2DS/H)
EOQ
√(2DS/H) — √(2DS/H)
H
H value — Variable used in the calculation

Guide étape par étape

  1. 1Annual demand (D)
  2. 2Cost to place order (S)
  3. 3Annual holding cost per unit (H)
  4. 4Formula: EOQ = √(2DS/H)
  5. 5Result shows optimal order quantity

Exemples résolus

Entrée
$5k order, $50 item
Résultat
100 units

Erreurs courantes à éviter

  • Not including all holding costs (storage, insurance, obsolescence)
  • Using average cost instead of per-unit cost

Questions fréquentes

What's the benefit of EOQ?

Minimizes total inventory costs by finding optimal balance between order and holding costs.

How often should I order at EOQ?

Frequency = annual demand ÷ EOQ; typically 5-12 times annually for most products.

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Paramètres