Production Order Quantity Calculator

Instructions: You can use this Production Order Quantity Calculator, by providing the yearly demand, the daily production rate, either the daily demand rate or the number of working days per year, and the setup and ordering costs, using the form below:

Yearly Demand (\(D\)) =
Daily Demand (\(d\)) =
Number of Working Days per Year =
Daily Production (\(p\)) =
Setup Cost (\(S\)) =
Holding Cost (\(H\)) =

Production Order Quantity (EOQ) Calculator

More about the Production Order Quantity for you to have a better understanding of the results provided by this solver. The production order quantity is a type of inventory policy that computes the order quantity \(POQ\) 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:

\[ POQ = \sqrt{\frac{2DS}{H \left(1 - \frac{d}{p} \right)}} \]

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

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