Overview
What Is EOQ?
Economic Order Quantity (EOQ) is the optimal order size that minimizes total inventory costs, balancing ordering costs against holding costs.
Calculate economic order quantity for inventory.
Economic Order Quantity (EOQ) is the optimal order size that minimizes total inventory costs, balancing ordering costs against holding costs.
Useful for optimizing inventory ordering to minimize total costs.
Input how many units you need per year.
Input the cost per order placed.
Input the annual cost to hold one unit in inventory.
The optimal order quantity updates automatically.
EOQ = √((2 × Annual Demand × Ordering Cost) ÷ Holding Cost per Unit)
The fixed cost incurred each time you place an order, regardless of quantity - includes processing, shipping setup, etc.
The cost to store one unit of inventory for a year, including storage, insurance, and opportunity cost of capital.
No, this classic model doesn't factor in bulk pricing discounts - more complex models handle that scenario.
Yes, the basic EOQ model assumes steady, predictable demand throughout the year.
No, calculations happen entirely in your browser.
EOQ remains a foundational concept, though modern approaches like Just-In-Time have evolved inventory management further.
No, this basic model doesn't include supplier lead time - safety stock calculations would address that separately.
Yes, this is a common practical application for optimizing purchase order quantities.
Yes, completely free with no sign-up required.