Operations research · Inventory planning

Economic order quantity scenario

Calculate economic order quantity scenario (units/order) using the displayed relationship and entered values.

Published · R0

Method and scope

EOQ = √(2 × annual demand × order cost ÷ annual holding cost per unit)

Use economic order quantity scenario for educational calculation or a clearly scoped arithmetic estimate. Intended for Learners, General educational use.

Inputs
  • Annual demand (units/year) — 1
  • Cost per order (one currency) — 1
  • Annual holding cost per unit (same currency/unit/year) — 1
SOURCE AND LIMITS

Assumptions: The displayed equation is applied to the entered values in the declared units. Any financial rate is interpreted per the period stated in its input label; no jurisdiction-specific fees, taxes, or product terms are inferred. Classical EOQ assumptions: steady demand, fixed ordering cost, fixed annual holding cost, and no quantity discounts, stockouts, lead-time uncertainty, or perishability.

Limitations: Review the equation, input units, assumptions, and method steps before using the result. This tool is not professional advice.

Method version 1.0.0 · Unit registry and result provenance are shown after calculation. This tool is limited to the documented scope.
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