Waj

Economic Order Quantity (EOQ) Calculator

Find the order size that minimizes total ordering and holding cost.

Hesaplama

Rakamınızı nasıl hesapladık

  1. Economic order quantity (units)√(2 × 12,000 × USD 50 ÷ USD 4)= 548
  2. Orders per year12,000 ÷ 548= 21.91
  3. Total ordering cost / year21.91 × USD 50= USD 1,095.45
  4. Total holding cost / year548 ÷ 2 × USD 4= USD 1,095.45

Bu rakam ne anlama geliyor

EOQ is the order size where total ordering cost and total holding cost are balanced — the point that minimizes their sum.

Order too often and ordering costs pile up; order too rarely and holding costs pile up instead. EOQ shows the balance point.

Nasıl iyileştirilir

  1. 01At the true EOQ, total ordering cost and total holding cost come out equal — a useful sanity check.
  2. 02Treat EOQ as a benchmark — it assumes steady demand and a fixed cost per order.

Sıkça sorulan sorular

What is EOQ?

The order quantity that minimizes the combined total of ordering costs and holding costs.

Why does the formula use a square root?

It's the mathematical point where the ordering-cost curve and the holding-cost curve cross — the minimum of their sum.

What if my real order size is far from EOQ?

You may be ordering too often or too rarely — EOQ shows the balance point to aim toward.

Does EOQ account for demand changes or bulk discounts?

No — the classic formula assumes steady demand and a fixed order cost; treat it as a starting benchmark.

How does WAJ help manufacturers?

WAJ has a manufacturing module already in use by factories running their operations on the platform.

See WAJ's manufacturing module in action.

WAJ has a manufacturing module already used by factories to run their operations on the platform — this calculator is one of the free tools built by the same team.