This free Economic Order Quantity calculator lets you minimize costs while matching customer demand.
Your EOQ is a key part of the forecasting process. Through your EOQ, you’ll be able to decide on the ideal order quantity that minimizes inventory costs while matching customer demand.
In order to calculate your EOQ, you’ll need your annual demand, fixed costs, and annual carrying cost per unit. Your fixed costs are the amount you have to spend on procuring stock, covering approval processes, inspections, and so on, while carrying costs are what you spend on storage and utillities.
If you’ve got your business up and running, you just need to look through your past records to figure out how much you’ve spent on procuring stock and last year’s demand.
To save you time on doing the maths manually for every single item, we’ve built an EOQ calculator just for you.
Try it out and let us know what you think.