EOQ Calculator

Calculate the economic order quantity that minimizes total annual inventory cost. Enter demand and holding cost for your preferred period; the calculator annualizes them automatically. All calculations run in your browser; your data is never sent to any server.

Parameters

Units sold or consumed per month.

Fixed cost per order: administration, freight, receiving.

Cost to hold one unit in stock per month (capital, space, obsolescence).

Economic order quantity (EOQ)
141units

At the EOQ, ordering cost and holding cost are equal, minimizing total annual cost.

Orders per year
84.9
Days between orders
4.3
Total annual cost
8,485.28 $ COP
Annual cost breakdown
AI interpretation

A read of the result like a consultant would give: what it means, what drives it, and one recommendation.

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Preguntas frecuentes

What is the economic order quantity (EOQ)?
It's the order size that minimizes total annual cost, balancing the cost of placing orders and the cost of holding inventory. It's calculated as EOQ = √(2·D·S/H).
How often should I order according to the EOQ?
The number of orders per year is annual demand divided by the EOQ; the time between orders is 365 divided by that number.