Economic Order Quantity (EOQ) Calculator
FinanceCalculate the Economic Order Quantity (EOQ), the order size that minimizes total inventory costs.
Economic Order Quantity (EOQ)
The order quantity that minimizes your combined ordering and holding costs.
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Odeh Ahwal0people find this calculator helpful
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Frequently Asked Questions
How is EOQ calculated?
EOQ = the square root of (2 x Yearly Demand x Order Cost / Yearly Holding Cost per Unit).
Why does EOQ minimize total inventory cost?
Ordering more per order lowers your total annual ordering cost but raises your total annual holding cost (since you carry more inventory on average); EOQ is the exact order size where these two opposing costs balance out.
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