Order Quantity Wey Minimize Costs
Balance cost to place orders with cost to keep goods in stock.
Your numbers
Order quantity wey minimize the two costs
E assume constant demand, instant restocking, no shortages, no bulk discounts and no shelf-life limit.
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You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
Use EOQ = √(2DS/H). D na yearly demand in units, S na cost per order, and H na yearly holding cost per unit. Result balance ordering and holding costs for the model.
Balance cost to place orders with cost to keep goods in stock.
Example wey show the calculation
- Units wey customers need for one year
- 10000
- Cost to place one order
- 50
- Cost to hold one unit for one year
- 2
- Order quantity wey minimize the two costs
- 707.106781187 units
- Number of orders for one year
- 14.1421356237
- Ordering and stock holding costs together for one year
- 1,414.21356237
Where e fit work and limits
E assume constant demand, instant restocking, no shortages, no bulk discounts and no shelf-life limit.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: c308f787ee9e · Example don get check: