Logistics & production
Economic order quantity Calculator
Balance purchase-order costs against average inventory holding costs. This free economic order quantity calculator shows the calculation and its assumptions so you can compare your own figures.
Your results
Balance purchase-order costs against average inventory holding costs.
Calculated outcomes
- Exact Order Quantity
- 707.1068
- Annual Ordering Cost
- €706.21
- Annual Holding Cost
- €708.00
- Inventory Value Per Order
- €8,496.00
Assumptions and estimates
- Classic EOQ assumes steady demand, instantaneous replenishment, no shortages and no quantity discounts. With zero order cost, EOQ tends to zero and no discrete order policy is inferred.
- Method: EOQ = square root of (2 × annual demand × cost per order ÷ annual holding cost per unit).
- Assumes constant demand, immediate replenishment and no quantity discounts or shortages. Round the practical order policy to supplier constraints.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the economic order quantity calculation works
EOQ = square root of (2 × annual demand × cost per order ÷ annual holding cost per unit).
Assumes constant demand, immediate replenishment and no quantity discounts or shortages. Round the practical order policy to supplier constraints.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review suggested order quantity and annual orders and annual relevant cost, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Annual unit demand
- 10000
- Cost per replenishment order (€)
- 50
- Annual holding cost per unit (€)
- 2
- Purchase price per unit (€)
- 12
- Suggested Order Quantity
- 708
- Annual Orders
- 14.1243
- Annual Relevant Cost
- €1,414.21