{"id":93,"date":"2015-05-29T09:38:06","date_gmt":"2015-05-29T07:38:06","guid":{"rendered":"http:\/\/wpcalc.com\/?p=93"},"modified":"2025-05-09T14:33:56","modified_gmt":"2025-05-09T11:33:56","slug":"economic-order-quantity","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/economic-order-quantity\/","title":{"rendered":"Economic Order Quantity Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 class=\"text-lg font-display font-bold\">EOQ (Optimal Order Size) Calculator<\/h2><\/div><div class=\"relative group inline-block\">\n  <button class=\"favorite\" id=\"favorite\" data-favorite-id=\"93\" data-favorite-title=\"Economic Order Quantity\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/economic-order-quantity\/\" data-favorite-excerpt=\"The Economic Order Quantity (EOQ) calculator helps determine the optimal order size that minimizes the total cost of inventory \u2014 including ordering and holding costs. It&#039;s a vital tool for inventory management, logistics, and supply chain optimization.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-storage-unit\">\n    <span class=\"icon icon-shape-star-empty\"><\/span>\n  <\/button>\n  <div class=\"absolute right-full -translate-y-1\/2 top-1\/2 mr-2 w-max max-w-xs px-3 py-2 bg-gray-800 text-white text-xs rounded shadow-lg opacity-0 group-hover:opacity-100 transition-opacity duration-200 z-10 pointer-events-none\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/economic-order-quantity\/\" method=\"POST\" class=\"calculator\" id=\"calculator-93\" data-post=\"93\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">Annual demand (units)<\/label><div class=\"term\">D<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"annual_demand_units\" id=\"field-1\" min=\"1\" step=\"any\" value=\"10000\"\/><small>Total quantity of units required per year<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">Ordering cost per order<\/label><div class=\"term\">S<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"ordering_cost_per_order\" id=\"field-2\" min=\"0.01\" step=\"any\" value=\"50\"\/><div class=\"unit\">$<\/div><small>Cost incurred each time an order is placed<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Holding cost per unit per year<\/label><div class=\"term\">H<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"holding_cost_per_unit_per_year\" id=\"field-3\" min=\"0.01\" step=\"any\" value=\"2\"\/><div class=\"unit\">$<\/div><small>Annual cost to store one unit of inventory<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"93\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Economic Order Quantity<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"units\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-2\"><span class=\"field-title\"><span>Interpretation<\/span><\/span><span class=\"field-value\" id=\"result-2\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"93\" aria-live=\"polite\"><h2 class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/h2><div class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center; margin: 32px 0;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-1721569815777345\"\n     data-ad-slot=\"6317458308\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n<p><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Economic Order Quantity Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n$$EOQ = \\sqrt{ \\frac{2 \\times D \\times S}{H} }$$\n<\/div>\r\n\t<\/figure>\r\n\t<br \/>\n<strong>Where:<\/strong><\/p>\n<ul>\n<li>$$D$$ = Annual Demand    <\/li>\n<li>$$S$$ = Ordering Cost per Order    <\/li>\n<li>$$H$$ = Holding Cost per Unit per Year<\/li>\n<\/ul>\n<p><strong>Explanation:<\/strong><br \/>\nEOQ minimizes the total cost of inventory by finding the perfect balance between ordering in bulk and holding inventory. It assumes constant demand and lead time.<br \/>\r\n<\/section><br \/>\nEOQ is widely used in operations, retail, and manufacturing to reduce storage costs and improve ordering efficiency. By using EOQ, businesses avoid overstocking and understocking while optimizing cash flow and warehouse space.<\/p>\n<p><strong>Example Variables:<\/strong><\/p>\n<ul>\n<li>Annual Demand (D): 10,000 units<\/li>\n<li>Ordering Cost (S): $50 per order<\/li>\n<li>Holding Cost (H): $2 per unit per year<\/li>\n<li>EOQ = \u221a((2 \u00d7 10,000 \u00d7 50) \/ 2) = \u221a500,000 = <strong>707 units<\/strong><\/li>\n<\/ul>\n<p><strong>Use Cases:<\/strong><\/p>\n<ul>\n<li>Supply chain and procurement planning<\/li>\n<li>Inventory control systems<\/li>\n<li>Cost reduction strategies<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Economic Order Quantity (EOQ) calculator helps determine the optimal order size that minimizes the total cost of inventory \u2014 including ordering and holding costs. It&#8217;s a vital tool for inventory management, logistics, and supply chain optimization.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[26],"class_list":["post-93","post","type-post","status-publish","format-standard","hentry","category-finance","tag-inventory"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/93","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=93"}],"version-history":[{"count":1,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/93\/revisions"}],"predecessor-version":[{"id":64141,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/93\/revisions\/64141"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=93"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=93"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=93"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}