Economic Order Quantity Calculator

Calculate EOQ, reorder point, and total inventory cost

Total number of units demanded or sold per year. Use historical data or forecasts.
units/yr
Fixed cost per purchase order: processing, shipping, receiving, inspection costs. Also called setup cost.
$
Annual cost to hold one unit in inventory: storage, insurance, obsolescence, capital cost. Typically 20-30% of unit cost.
$
Purchase price per unit. Used to calculate total annual inventory cost including purchasing costs.
$
Number of days from placing an order to receiving it. Used to calculate reorder point.
days

Results

Economic Order Quantity (EOQ)-units
Number of Orders per Year-orders
Order Cycle Time-days
Reorder Point-units
Annual Ordering Cost-
Annual Holding Cost-
Total Annual Inventory Cost-
References: Wilson, R.H. (1934) - Scientific Routine for Stock Control; Harris, F.W. (1913) - How Many Parts to Make at Once; Heizer and Render - Operations Management (EOQ model).