EOQ is about 566 units per order before supplier or storage constraints.
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Economic Order Quantity Calculator
Balance ordering cost against inventory holding cost with the standard EOQ planning model.
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No account. Formula and assumptions are shown below.
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Economic order quantity details
Formula & disclaimer
Economic Order Quantity = β(2 Γ Annual Demand Γ Cost per Order Γ· Annual Holding Cost per Unit)
View assumptionsFormula reviewCalcs at Hand Editorial TeamVerified 1 September 2026 Β· automated checks included
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Projection
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How to read this result
Three useful checks, kept deliberately short.
12,000 units of annual demand, RM80 per order and RM6 annual holding cost per unit: Multiply demand by twice the order cost Β· Divide by holding cost per unit Β· Take the square root.
Round to a practical quantity that respects pack sizes, minimum orders and available storage.
Formula and assumptions
Economic Order Quantity = β(2 Γ Annual Demand Γ Cost per Order Γ· Annual Holding Cost per Unit)The standard model assumes steady demand, known costs and immediate replenishment without stockouts.
Keep in mind: Validate demand variability, lead time, discounts, storage limits and supplier minimums before using the result for purchasing.
Produced byCalcs at Hand Editorial Team
Last formula check1 September 2026
Review methodKnown examples + boundary cases
Editorial and correction policy β