Question

how to calculate EOQ​

Answer 1

Multiply the demand by 2, then multiply the result by the order cost. Divide the result by the holding cost. Calculate the square root of the result to obtain EOQ

Answer 2

Answer:

EOQ formula

Multiply the demand by 2, then multiply the result by the order cost. Divide the result by the holding cost. Calculate the square root of the result to obtain EOQ.

Determine the demand in units

Determine the order cost (incremental cost to process and order)

Determine the holding cost (incremental cost to hold one unit in inventory)

Multiply the demand by 2, then multiply the result by the order cost.

Divide the result by the holding cost.

Calculate the square root of the result to obtain EOQ.

In short: EOQ = square root of (2 x D x S/H) or √ (2DS / H)