📦 Inventory
⚖️ Economic Order Quantity (EOQ)
Find the optimal order quantity that minimises total inventory costs — ordering plus holding.
📊 Input Parameters
Admin, shipping, receiving costs per order
Typically 20–30% of unit cost/year
Holding cost per unit/year: $1.25
EOQ (Optimal Order Qty)
894 units
Orders Per Year
11.2
Order Cycle (Days)
33 days
Annual Ordering Cost
$559.02
Annual Holding Cost
$559.02
Total Inventory Cost
$1,118.03
Annual Purchase Cost
$50,000.00
Total Annual Cost
$51,118.03
📐 Formula
EOQ = √(2DS / H)
Where D = Annual Demand, S = Ordering Cost per Order, H = Holding Cost per Unit per Year
EOQ = √(2 × 10000 × 50 / 1.25) = 894 units