EOQ Calculator (Economic Order Quantity)

LAST UPDATE: July 4th, 2018


What is EOQ (Economic Order Quantity)?

EOQ is the ideal order quantity for a company to purchase.

It is based on the demand for an item, the cost to order it, and the cost to carry the item in inventory.

EOQ can be used in a number areas of business analysis, including reordering stock, cash flow,


\text{EOQ} = \sqrt{\frac{2 \times \text{Demand} \times \text{Ordering Costs}}{\text{Carrying Costs}}}

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