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EOQ Explorer

Economic Order Quantity · balance ordering cost vs holding cost · the classic square-root formula

Total Cost Curve

Results

Optimal EOQ (Q*)
0
Total annual cost
$0
Orders / year
0
Cycle length (days)
0

Inputs

About this tool

Economic Order Quantity

The concept

EOQ balances ordering cost against holding cost to find the cheapest lot size.

How it works

Larger orders mean fewer setups but more stock; the optimum sits where the two costs cross.

Winning strategy

Doubling demand does not double the lot - EOQ grows with the square root.

EOQ = sqrt(2DS/H)
EOQHolding costOrdering costLot sizing