# Economic Order Quantity(EOQ) Calculator

The Economic Order Quantity(EOQ) calculator helps to determines the exact number of items you should order to refill your stock of a particular item.

# Results...

^{**}we assumes, number of working days per year is 250 days.

## Formula for Economic Order Quantity(EOQ) :

Economic Order Quantity(EOQ) is derived from a below formula that consists of annual demand, holding cost, and order cost. This formula aims at striking a balance between the amount you sell and the amount you spend to manage your inventory.

**Economic Order Quantity (EOQ) = (2 × D × S / H) **

( or )

**Economic Order Quantity (EOQ) = (2 × D × S / H) ^{ 1/2}**

Where,

D - Annual demand (in units)

S - Cost of ordering per order

H - Carrying/holding cost per unit per year.

**Expected time between Orders Formula :**

This formula is used to finds the expected period of time between your orders.

**Expected time between Orders (T) = Number Of Working Days per Year / Orders per year **

__Example :__

Number of Working days per year = 250 days , Orders per year = 5

Expected time between Orders (T) = 250 / 5

Expected time between Orders (T) = 50 days between orders.

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