8/18/2019 Economic Order Quantity Calculator

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BASIC

D Annual Demand Quantity of the Product 1,000

P Purchase Cost per Unit 1.00C Fixed Cost per Order !."0

# Annual #oldin$ Cost per Unit 0."0

%&arehouse space, refri$., ins., etc.'

EOQ Economic Order Quantity 500.00

%optimal order (uantity'

)ince the demand &ill *e satis+ed &ith the unit purchase cost any &ay, it is d

! types- #oldin$ Cost and Orderin$ Cost. he trado *et&een these costs is o

OQ is the leel of the inentory &here orderin$ cost and carryin$ cost remai

Costs by Order Quantity

#oldin$ Cost

Orderin$ Cost

 otal Cost

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  OQ MODEL0

Costs with EOQ

Aera$e Annual Purchase Cost- 1,000.00Aera$e Annual Fixed Order Cost- 1!".00

Aera$e Annual #oldin$ Cost- 1!".00

ota!" #$%50.00

 ry dierent order (uantities- "00.00

iscarded from the model. he cost in consideration is reduced to

  ptimi/ed at the minimum point of the otal Cost Cure, i.e. OQ.

s e(ual.

0.00

100.00

!00.00

200.00

300.00

"00.00

00.00

In&entory Le&e!

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'o!!ow the ste(s to enab!e your on!ine EOQ Ana!** OQ model uses the *elo& assumptions-

1. he orderin$ cost is constant.

!. he rate of demand is constant

2. he lead time is +xed

3. he purchase price of the item is constant i.e no discount is aaila*le

". he replenishment is made instantaneously, the &hole *atch is deliered at onc

 he template allo&s you to compare OQ &ith any other order (uantity.

**  4our OQ Analy/er is ready to use. Follo&in$ steps are for online use.

#+ 5isit the site *elo&-

http-66&&&.spreadsheet&e*.com6$ettin$7started.htm

 4ou &ill only need the username and pass&ord to create your online OQ Analy/er.

%+ 5isit the site *elo&-

https-66&&&3.spreadsheet&e*.com6)preadsheet8966

:o$in to pa$e &ith your ne& account information.

,+ Clic; d?0c

** >n order to see more online applications created &ith P)8 you can chec; the lin; *el

http-66&&&.spreadsheet&e*.com6demos.htm

Copyri$ht %c' !00 Pa$os, >nc., http-66&&&.pa$os.com6

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