Optimal order quantity
600 units
Inventory cost control
Order less often. Tie up less capital.
Calculate the order quantity that balances ordering effort with inventory carrying cost — and turn replenishment into a defensible economic decision.
Calculate the optimal order quantity from demand, ordering cost and carrying cost. See the economically optimal number of orders per year and how total relevant cost changes.
Your operating inputs
The economic order point
Orders per year
20
Annual ordering cost
€1,500
Annual holding cost
€1,500
Total relevant annual cost
€3,000
Average capital in cycle stock
€7,500
At roughly 600 units per order and 20 orders a year, ordering and holding costs meet at their economic balance. This keeps the relevant annual cost near €3,000 without buying more cycle stock than the operation needs.
EOQ assumes stable demand, unit price and replenishment. Quantity discounts, capacity constraints and safety stock are not included.
Order less often. Tie up less capital.
Calculate the optimal order quantity from demand, ordering cost and carrying cost. See the economically optimal number of orders per year and how total relevant cost changes.