Purchasing Optimization
EOQ Visualizer
See how ordering cost and holding cost balance to determine the economic order quantity.
Economic order quantity
Adjust demand and cost assumptions to move the optimal order quantity.
Ordering costHolding costTotal cost
EOQ265 units
Ordering cost$1587/yr
Holding cost$1587/yr
Total relevant cost$3175/yr
Q* = √(2DS / H) = √(2(3500)(120) / 12) = 265
Ordering cost ≈ holding cost at Q*
Ordering cost ≈ holding cost at Q*
EOQ assumes relatively stable demand, no stockouts, and replenishment without quantity constraints.