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Inventory Economic Order Quantity Model

Enter the
Enter the data
data in
in the
the shaded
shaded area.
area.

Order Quantity Data


Annual Demand Rate, D 1000
Setup/Ordering Cost, S 10
Holding/Carrying Cost per Unit per Year, H $ 0.50 (fixed amount)
Unit price, P

Results Economic Orde


Optimum Order Quantity, Q* (EOQ) 200.00
Maximum Inventory, Q* 200.00 250.00
Average Inventory, Q*/2 100.00
Number of Orders, D/Q* 5.00 200.00

Annual Holding Cost, HQ*/2 $50.00


Annual Order Cost, DS/Q* $50.00 150.00

Annual Unit Costs, PD $0.00 100.00


Total Annual Cost, Tc $100.00
50.00

0.00
0.00 50.00 100.00 150.00 200.00

Setup/Order
Total cost

Cost Table (Sensitivity) Start graph at 50 Increment 16.66667

Setup/Order Holding
Order Quantity, Q cost cost Total cost
50.00 200.00 12.50 212.50
66.67 150.00 16.67 166.67
83.33 120.00 20.83 140.83
100.00 100.00 25.00 125.00
116.67 85.71 29.17 114.88
133.33 75.00 33.33 108.33
150.00 66.67 37.50 104.17
166.67 60.00 41.67 101.67
183.33 54.55 45.83 100.38
200.00 50.00 50.00 100.00
216.67 46.15 54.17 100.32
233.33 42.86 58.33 101.19
250.00 40.00 62.50 102.50
266.67 37.50 66.67 104.17
283.33 35.29 70.83 106.13
300.00 33.33 75.00 108.33
316.67 31.58 79.17 110.75
333.33 30.00 83.33 113.33
350.00 28.57 87.50 116.07
366.67 27.27 91.67 118.94
383.33 26.09 95.83 121.92
400.00 25.00 100.00 125.00
416.67 24.00 104.17 128.17
433.33 23.08 108.33 131.41

200.00 0.00
200.00 100.00
Economic Order Quantity Costs

00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00

Setup/Order cost Holding cost


Total cost EOQ
Inventory Economic Order Quantity Model
Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area.

Order Quantity Data


Annual Demand Rate, D 250
Setup/Ordering Cost, S 20
Holding/Carrying Cost per Unit per Year, H $ 1.00 (fixed amount)
Unit price, P

Results Economic Orde


Optimum Order Quantity, Q* (EOQ) 100.00 a
Maximum Inventory, Q* 100.00 250.00
Average Inventory, Q*/2 50.00 c
Number of Orders, D/Q* 2.50 b 200.00

Annual Holding Cost, HQ*/2 $50.00


Annual Order Cost, DS/Q* $50.00 150.00

Annual Unit Costs, PD $0.00 100.00


Total Annual Cost, Tc $100.00
50.00

0.00
0.00 50.00 100.00

Setup/Order
Total cost

Cost Table (Sensitivity) Start graph at 25 Increment 8.333333

Setup/Order Holding
Order Quantity, Q cost cost Total cost
25.00 200.00 12.50 212.50
33.33 150.00 16.67 166.67
41.67 120.00 20.83 140.83
50.00 100.00 25.00 125.00
58.33 85.71 29.17 114.88
66.67 75.00 33.33 108.33
75.00 66.67 37.50 104.17
83.33 60.00 41.67 101.67
91.67 54.55 45.83 100.38
100.00 50.00 50.00 100.00
108.33 46.15 54.17 100.32
116.67 42.86 58.33 101.19
125.00 40.00 62.50 102.50
133.33 37.50 66.67 104.17
141.67 35.29 70.83 106.13
150.00 33.33 75.00 108.33
158.33 31.58 79.17 110.75
166.67 30.00 83.33 113.33
175.00 28.57 87.50 116.07
183.33 27.27 91.67 118.94
191.67 26.09 95.83 121.92
200.00 25.00 100.00 125.00
208.33 24.00 104.17 128.17
216.67 23.08 108.33 131.41

100.00 0.00
100.00 100.00
Economic Order Quantity Costs

00 50.00 100.00 150.00 200.00 250.00

Setup/Order cost Holding cost


Total cost EOQ

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