EOQ Calculator (Economic Order Quantity)
Economic Order Quantity Calculator
Economic Order Quantity Calculator equal to number of value 2 (INR) multiple demand multiple Order costs (INR) divided Holding costs (INR) number of value 0.5.
The Formula us,
EOQ = (2 * Demand * Order costs / Holding costs)0.5
let us consider,
- Yearly demand for the product which EOQ is calculated.
- Holding cost, which is the cost of keeping one unit of the product in the inventory.
- Order cost, which is how much you have to pay to order the product.
- Ordering and holding costs, as well as demand, which should remain constant during the year.
- That’s it – you have gathered all the data for the EOQ formula
Calculate the Economic order Quantity
Demand is 500,000 units. order costs you $10. Holding Cost $4 .
EOQ = (2 * Demand * Order costs / Holding costs)0.5
EOQ = (2 * 500,000 * $10 / $4)0.5
EOQ = (2,500,000)0.5
EOQ = 1,581.14 units