Formula
EOQ = √(2DS/H) where D is annual demand, S order cost, H holding cost per unit.
Key takeaways
- Higher demand raises EOQ
- Higher holding cost lowers EOQ
Related calculators
Apply these concepts with formula-based tools on Calculator Factory.
- BusinessEOQ Calculator (Economic Order Quantity)
Calculate the optimal order quantity that minimizes total inventory ordering and holding costs using the classic Wilson EOQ model.
- BusinessSafety Stock Calculator
Calculate safety stock and reorder point using demand variability, lead time, and a target service level Z-score.
- BusinessInventory Reorder Calculator
Find your reorder point, days until stockout, and stockout risk level for small business inventory planning.
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FAQ
- Does EOQ work for all SKUs?
- Best for stable-demand items; volatile demand needs safety stock and reorder point models.