You can calculate optimal order size or manufacture batch with this EOQ calculator. Formula uses so called Wilson’s formula:

EOQ function

EOQ function

where

  • Q = Economical/Optimal order quantity
  • P = Ordering costs (setting costs)
  • D =┬áDemand in year
  • H = Holding costs
  • Holding costs can be:
    • CV (C = Interest, V = Products unit price)
    • CV + I (I = storage cost per unit)

With this calculator you can decide if you want to calculate only capital, only storage or both costs.

 

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