EOQ Calculator
Find the sweet spot between ordering and holding costs.
Why EOQ Matters
Economic Order Quantity (EOQ) is the ideal quantity of units a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Ordering too often increases your ordering/shipping costs. Ordering too much increases your storage and capital tie-up (holding costs). EOQ mathematically finds the lowest total cost point.
EOQ = sqrt( (2 * Demand * OrderCost) / HoldingCost )