Economic Order Quantity Formula |
| \( EOQ \;=\; \dfrac{ 2 \cdot D \cdot CPU }{ HC } \) |
| Symbol |
| \( EOQ \) = economic order quantity |
| \( D \) = demand in units (typically on an annual basis) |
| \( CPU \) = cost per order (per purchase order) |
| \( HC \) = holding cost (per unit, per year) |
Economic order quantity, abbreviated as EOQ, is the ideal order quantity that a company should make for its inventory given a set cost of production.
