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Calculates economic order quantity to minimize total inventory costs. Balances ordering costs against holding costs.
सूत्र
Formula: EOQ = √(2DS/H)
- EOQ
- √(2DS/H) — √(2DS/H)
- H
- H value — Variable used in the calculation
चरण-दर-चरण मार्गदर्शिका
- 1Annual demand (D)
- 2Cost to place order (S)
- 3Annual holding cost per unit (H)
- 4Formula: EOQ = √(2DS/H)
- 5Result shows optimal order quantity
हल किए गए उदाहरण
इनपुट
$5k order, $50 item
परिणाम
100 units
सामान्य गलतियां जिनसे बचना है
- ✕Not including all holding costs (storage, insurance, obsolescence)
- ✕Using average cost instead of per-unit cost
अक्सर पूछे जाने वाले प्रश्न
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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