Economic Order Quantity Calculator
Calculates the order quantity that minimizes the total holding costs and ordering costs.
Q: The optimal order quantity
D: The annual demand quantity
K: The fixed cost per order, setup cost
P: The purchase unit price, unit production cost
cc%: The carrying cost percentage
Example
For and annual requirement quantity (D) = 10000 units, cost per order (K) = $2, cost per unit (P)= $8 and a carrying cost percentage of 2%
| Value | Key | Display | Description |
|---|---|---|---|
| 2 | cc% | 2.00 | Stores the carrying cost percentage%. |
| 8 | P | 8.00 | Stores the purchase unit price. |
| 2 | K | 2.00 | Stores the fixed cost per order. |
| EE4 | D | 10,000.00 | Stores the annual demand quantity |
| Q | 500.00 | Calculates the optimal order quantity |
Reference: Economic order quantity - Wikipedia