When to use this calculator
Estimate the order size balancing simple ordering and holding costs. Classic EOQ assumes stable demand, instantaneous replenishment and no quantity discounts or stockouts.
Explore the work & operations calculators for other questions in this topic. For a related calculation, use the First Pass Yield Calculator: Measure the share of process units accepted without rework.
PUTTING IT INTO PRACTICE
Economic Order Quantity: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Annual demand | 10,000 |
| Ordering cost per order | 20 |
| Annual holding cost per unit | 4 |
| Result | 316.227766 units |
- Check the input labels and enter the example values above.
- Apply the relationship: EOQ = √(2 × annual demand × order cost/holding cost).
- The result is 316.227766 units, rounded for display.
How to interpret your result
Classic EOQ assumes stable demand, instantaneous replenishment and no quantity discounts or stockouts.
Keep output and labour measures tied to the same period. Capacity is an assumption that may depend on staffing and process conditions. Average productivity and turnover can conceal seasonal peaks and bottlenecks.
Frequently asked questions
Does more output per hour always mean better performance?
Not by itself. Quality, rework, safety, cost and constraints can change the practical value of a productivity increase.
When is the economic order quantity calculator useful?
Estimate the order size balancing simple ordering and holding costs. Classic EOQ assumes stable demand, instantaneous replenishment and no quantity discounts or stockouts.
How do I use the economic order quantity calculator?
Enter annual demand, ordering cost per order, annual holding cost per unit. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
EOQ = √(2 × annual demand × order cost/holding cost).
What should I check before using the result?
Classic EOQ assumes stable demand, instantaneous replenishment and no quantity discounts or stockouts.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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