Order Quantity
Estimate how many units to order at a time from yearly demand, the cost to place an order, and yearly holding cost per unit.
Frequently asked questions
What does EOQ assume?
Steady demand, a fixed order cost, and no stockouts. Real lead times and bulk discounts can change the answer.
What is the yearly cost shown?
Half the order times holding cost, plus the number of orders times the cost to place one.