Economic Order Quantity (EOQ) Template Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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Economic Order Quantity Example

Actual Demand (D) 2,000 EOQ = 400

Volumn per Order Q
Ordering Cost (S) $1,000
Unit Cost (C ) $250
Holding Cost (H) $25
Carrying Cost (I) 10%

Volumn per Order Batches per Annual Order Annual Holding Annual Total
(Q) Year (D/Q) Cost (D/Q*S) Cost (Q/2*H) Cost (TC)
50 40 $40,000 $625 $40,625
100 20 $20,000 $1,250 $21,250
150 13 $13,333 $1,875 $15,208
200 10 $10,000 $2,500 $12,500
250 8 $8,000 $3,125 $11,125
300 7 $6,667 $3,750 $10,417
350 6 $5,714 $4,375 $10,089
400 5 $5,000 $5,000 $10,000
450 4 $4,444 $5,625 $10,069
500 4 $4,000 $6,250 $10,250
550 4 $3,636 $6,875 $10,511
600 3 $3,333 $7,500 $10,833
650 3 $3,077 $8,125 $11,202
700 3 $2,857 $8,750 $11,607
 Economic Order Quantity
$45,000
$40,000
$35,000
$30,000
$25,000
Cost

$20,000
$15,000
$10,000
$5,000
$0
50 100 150 200 250 300 350 400 450 500 550 600 650 700

Quantity

Annual Holding Cost Annual Order Cost Annual Total Cost

 This file is for educational purposes only. E&OE

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600 650 700

Cost