Browser-local worksheet
Enter your inputs
Nothing is uploaded or saved
How to use it
A short, reviewable workflow
- 01
Enter annual unit demand and cost per order.
- 02
Enter unit cost and annual holding rate.
- 03
Use working days to translate order frequency into an approximate cycle.
Useful for
Common use cases
- Setting a starting replenishment quantity
- Explaining inventory tradeoffs
- Comparing current order quantity to an EOQ baseline
Important boundary
What this result cannot decide
Validate the output against MOQ, pack size, available cash, storage, expiry, demand variability, and supplier reliability.
Model notes
Assumptions and limitations
Assumptions
- Demand is steady and replenishment is instantaneous.
- No stockouts or quantity discounts occur.
- Holding cost is proportional to unit value.
Limitations
- Safety stock, capacity, shelf life, and supplier constraints are excluded.
- EOQ is a planning baseline, not an automatic order instruction.
Questions
Frequently asked
What should ordering cost include?
Include the incremental administrative, receiving, and transaction effort associated with one order.
What is the holding rate?
The annual percentage of unit value attributed to capital, storage, insurance, shrinkage, and obsolescence.