# Economic Order Quantity Calculator

Instructions: You can use this Economic Order Quantity Calculator, by providing the yearly demand, setup and ordering costs, using the form below:

Yearly Demand ($$D$$) =
Setup Cost ($$S$$) =
Holding Cost ($$H$$) =

#### Economic Order Quantity (EOQ) Calculator

More about the Economic Order Quantity for you to have a better understanding of the results provided by this solver. The economic order quantity is a type of inventory policy that computes the order quantity $$EOQ$$ that minimizes the total annual inventory costs, that consists of the sum of the annual setup costs and the annual holding costs. This optimal order quantity is computed by means of the following formula:

$EOQ = \sqrt{\frac{2DS}{H}}$

Depending on the assumptions linked to the process, other inventory policies could be used, such as the production order quantity model.

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