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Calculators · Free
Pack-constrained economic order quantity
Balance ordering and holding costs for an inventory buyer.
01Enter your values
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02Pack-constrained economic order quantity
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How it works
Balance ordering and holding costs for an inventory buyer.
Q* = √(2DS/H); K(Q) = DS/Q + HQ/2
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Discovery source
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About this tool
Use tool ↑Balance ordering and holding costs for an inventory buyer.
Use one currency throughout. Compare the pack multiples immediately below and above √(2DS/H). The lower annual ordering-plus-holding cost wins. Assumes constant demand and immediate replenishment.
How to use it
- Enter your values
Annual demand in units · Cost per order · Holding cost per unit per year · Order pack multiple
- Calculate / generate
Balance ordering and holding costs for an inventory buyer.
- Result
Units per order: 600 Annual relevant cost: 1,900 currency units Orders per year: 20
Calculation method
Q* = √(2DS/H); K(Q) = DS/Q + HQ/2
Pack-constrained economic order quantity
- Annual demand in units
- 12000
- Cost per order
- 50
- Holding cost per unit per year
- 3
- Order pack multiple
- 100
Result
Units per order: 600 Annual relevant cost: 1,900 currency units Orders per year: 20
Frequently asked questions
Does it handle discounts or shortages?
No. Purchase cost, quantity discounts, safety stock, capacity and uncertain lead times are excluded.
Where does my data go?
Calculations run on your device. Form inputs are not sent to a server.