Economic Order Quantity Calculator
Unit Sales =
Fixed Costs =
Carry Cost =
EOQ (Economic Order Quantity) calculates the optimum quantity of units to order.
- Unit Sales: annual unit sales
- Fixed Costs: fixed cost of placing and receiving an order
- Carry Cost: carrying cost as a percentage of inventory (includes warehousing costs, interest on funds tied up in inventory, insurance and obsolescence)
- Price/Unit: purchase price per unit of inventory
- EOQ: economic order quantity
Traditionally your company has sold 10,000 units per year. It costs $300 for shipping and handling and $19.99 per unit. If the carry cost for inventory is 20%, what is the ideal order size?
- Sales: 10,000
- Fixed Costs: 300.00
- Carry Cost: 20.000%
- Price/Unit: 19.99
Select "=" on EOQ row. The optimal order quantity is 1,225 units.