EOQ Calculator - Economic Order Quantity Optimizer
Calculate the optimal Economic Order Quantity (EOQ) to minimize total inventory costs including ordering and holding costs. Free supply chain optimization tool for inventory management.
Inventory Parameters
Enter your demand, cost, and lead time data to calculate optimal order quantity.
Optimization Results
Optimal EOQ
0
units per order
Number of Orders Per Year
0
orders annually
Order Cycle
0
days between orders
Total Annual Inventory Cost
$0
ordering + holding
Total Ordering Cost
$0
per year
Total Holding Cost
$0
per year
Reorder Point
0
units (based on lead time)
How EOQ Calculator - Economic Order Quantity Optimizer Works
Calculate optimal Economic Order Quantity (EOQ) to minimize inventory costs. Free inventory optimization tool for supply chain management.
Core Use Case Scenario
Calculate optimal Economic Order Quantity (EOQ) to minimize inventory costs. Free inventory optimization tool for supply chain management.
Troubleshooting & Edge-Case Failure Points
- Verify all required fields are filled.
- Ensure numeric inputs use valid formats.
- Clear browser cache if values appear stale.
- Use a modern browser for full compatibility.
Step-by-Step Instructions
- Open the tool and review default values.
- Enter your parameters in the input fields.
- Click calculate to see results.
- Review output and use Copy Result if needed.
Related Web Utilities (Silo Hub)
Informative Guides & Helper Articles
EOQ Formula and Calculation Guide - Step-by-Step Inventory Optimization
Master the EOQ formula with our complete calculation guide. Learn step-by-step how to compute optimal order quantities, interpret results, and avoid common inventory mistakes.
Read Article →Inventory Carrying Cost Optimization - Reduce Holding Costs
Learn how to optimize inventory carrying costs by balancing ordering and holding expenses. Discover strategies to reduce storage, capital, and obsolescence costs using EOQ analysis.
Read Article →Reorder Point and Safety Stock - Inventory Control Guide
Master reorder point and safety stock calculations to prevent stockouts and overstocking. Learn how lead time and demand variability affect inventory replenishment strategies.
Read Article →How to Use the EOQ Calculator
Finds the order quantity that minimizes the total of ordering costs and holding costs — the century-old inventory formula that still runs supply chains.
- Enter annual demand in units.
- Enter the cost per order (admin + shipping + receiving labor).
- Enter annual holding cost per unit (capital, storage, insurance, spoilage — often 20–25% of unit cost).
- Read EOQ, orders per year, and days between orders.
The Economic Order Quantity
EOQ = √(2DS ÷ H). Worked example: 10,000 units/year demand, $45 per order, $2.20 per unit/year to hold: EOQ = √(2 × 10,000 × 45 ÷ 2.2) = √409,091 ≈ 640 units per order, about 15.6 orders a year, one every ~3.3 weeks. The intuition: every doubling of order quantity halves ordering cost but doubles average inventory — EOQ is the exact balance point. Real-world caveats the formula ignores: quantity discounts (recompute total cost at the break), demand seasonality (use period EOQs), and shelf-life caps (order smaller than EOQ if product expires).
EOQ Calculator FAQ
What does EOQ actually minimize?
The sum of ordering costs and holding costs - the U-shaped total cost curve. Ordering more less often cuts order costs but raises storage and capital costs.
What holding cost should I assume?
Commonly 20-25% of unit value per year: cost of capital (10-12%) + storage + insurance + shrinkage/obsolescence.
Does EOQ work for perishables?
Only as an upper bound - shelf life caps order size below EOQ. Run EOQ, then cap by sell-through-before-expiry.