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fin.economic-order-quantity-EOQ Calculator
Calculates EOQ, total annual cost, and reorder frequency from annual demand, ordering cost, and unit holding cost. EOQ is robust — a 10% error in demand or holding cost changes the EOQ by only 5%, making it a practical rather than just theoretical tool.
Inputs
D Units Yr
Reference formula or conversion factor shown for context.
S Order Cost
Reference formula or conversion factor shown for context.
H Holding Cost
Reference formula or conversion factor shown for context.
P Unit Price
Revenue received per unit. Multiply by units sold to get total revenue.
Results
EOQ (units per order)
Sample size or count used in the calculation.
orders per year
Reference formula or conversion factor shown for context.
order cycle (days)
Reference formula or conversion factor shown for context.
total annual inventory cost ($)
The result expressed on a per-year basis.
EOQ = √(2DS/H)
Reference formula or conversion factor shown for context.
reorder point (at 5-day lead time)
Lead time for changes -- time from code commit to production. A key DORA metric. Elite teams achieve under one hour.