Does it handle discounts or shortages?
Mistake: Treating a result as valid outside the described scope.
Fix: No. Purchase cost, quantity discounts, safety stock, capacity and uncertain lead times are excluded.
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Pack-constrained economic order quantity
Balance ordering and holding costs for an inventory buyer.
This tool is archived. Recheck its method and dated data before use.
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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Inputs are processed on this page and are never sent to a server.
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.
- Enter your values
- Annual demand in units
- Cost per order
- Holding cost per unit per year
- Order pack multiple
- Calculation method
Q* = √(2DS/H); K(Q) = DS/Q + HQ/2
- Example scenario · Result
Units per order: 600 Annual relevant cost: 1,900 currency units Orders per year: 20
Calculation method
- 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.
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.
Terms and definitions
Enter your values
- Annual demand in units
The lower annual ordering-plus-holding cost wins.
Enter a numerical value for this quantity.
Minimum: 1 · Maximum: 1000000000000
- Cost per order
The lower annual ordering-plus-holding cost wins.
Enter a numerical value for this quantity.
Minimum: 1e-9 · Maximum: 1000000000000
- Holding cost per unit per year
The lower annual ordering-plus-holding cost wins.
Enter a numerical value for this quantity.
Minimum: 1e-9 · Maximum: 1000000000000
- Order pack multiple
Compare the pack multiples immediately below and above √(2DS/H).
Enter a whole number; fractional counts are not valid.
Minimum: 1 · Maximum: 1000000000
Result
- Result
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.
Calculated from your entries using the method below.
- Units per order
The lower annual ordering-plus-holding cost wins.
Calculated from your entries using the method below.
- Annual relevant cost
The lower annual ordering-plus-holding cost wins.
Calculated from your entries using the method below.
- Orders per year
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.
Calculated from your entries using the method below.
- Value
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.
Calculated from your entries using the method below.
- Unit
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.
Calculated from your entries using the method below.
- Annual ordering cost
The lower annual ordering-plus-holding cost wins.
Calculated from your entries using the method below.
- Annual holding cost
The lower annual ordering-plus-holding cost wins.
Calculated from your entries using the method below.
- Continuous optimum
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.
Calculated from your entries using the method below.
Common mistakes and quick fixes
Limits and key assumptions
- No. Purchase cost, quantity discounts, safety stock, capacity and uncertain lead times are excluded.
- Assumes constant demand and immediate replenishment.
- Displayed results may be rounded; rounding does not add measurement precision.