EOQ calculator
Find how many units to order each time so ordering and storage costs are as low as possible. See how often to order and what inventory costs you per year.
How to use it
- You enter the data
- Smallo works it out
- You get the result
- Enter how many units you sell per year.
- Enter the cost of placing one order and of storing one unit for a year.
- Read the EOQ, the orders per year and the total yearly cost.
Frequently asked questions
What does EOQ mean?
Economic order quantity: the order size that keeps the total of ordering costs and storage costs at its lowest, assuming steady demand.
What goes into the storage cost?
Everything it costs to keep one unit for a year: space, insurance, spoilage, shrinkage and the money tied up in stock. It is often 20% to 30% of the unit cost.