EOQ Calculator
Economic Order Quantity (EOQ) with direct and rate-based inputs.
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Advanced Inventory Planning
Model reorder points, safety stock, lead-time demand, and total inventory cost curves.
Frequently Asked Questions
What is Economic Order Quantity (EOQ)?
EOQ is the optimal order quantity that minimises the combined costs of ordering and holding inventory. It balances the trade-off between ordering frequently (lower holding cost) and ordering in bulk (lower ordering cost).
What is the EOQ formula?
EOQ = √(2DS / H), where D is annual demand, S is the ordering cost per order, and H is the annual holding cost per unit.
What happens if I order more or less than the EOQ?
Ordering less means more frequent orders and higher total ordering costs. Ordering more means larger average inventory and higher holding costs. Both result in higher total inventory costs than the EOQ.