How to Calculate Economic Order Quantity?
Economic Order Quantity calculator uses Economic Order Quantity = ((2*Fixed cost per order*Demand in Units Per Year)/Carrying cost per unit per year)*(1/2) to calculate the Economic Order Quantity, Economic Order Quantity is an equation for the inventory that determines the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate, and other variables. Economic Order Quantity is denoted by EOQ symbol.
How to calculate Economic Order Quantity using this online calculator? To use this online calculator for Economic Order Quantity, enter Fixed cost per order (Cf), Demand in Units Per Year (Demand) & Carrying cost per unit per year (C_{h}) and hit the calculate button. Here is how the Economic Order Quantity calculation can be explained with given input values -> 285714.3 = ((2*500*2000)/3.5)*(1/2).