Calculate the Economic Order Quantity and Total Cost for efficient inventory management. Find order interval, material, inventory, transaction, and operational costs.

Economic Order Quantity and Total Cost

Purpose

The Economic Order Quantity (EOQ) calculator function helps you determine the optimal order quantity that minimizes total inventory costs. It also calculates the total cost associated with ordering and holding inventory.

Use Cases

• Determining the ideal order quantity to minimize inventory costs
• Calculating total inventory costs including ordering and holding costs

How to Use

1. Enter the required input values in the corresponding fields.
2. Click on the "Calculate" button to get the results.

Input Values

1. Demand: The quantity of units demanded per year (default unit is unit/yr)
2. Transaction Cost: The cost per transaction (default unit is UNC)
3. Unit Cost: The cost per unit (optional, default unit is UNC/unit)
4. Cost of Capital: The cost of capital per unit of currency per year (optional, default unit is UNC/UNC/yr)
5. Cost of Excess: The cost of excess inventory per unit per year (optional, default unit is UNC/unit/yr)

Output Values

1. Order Interval: The time interval between orders (unit: months)
2. Material Cost Total: The total cost of materials per year (unit: currency/yr)
3. Inventory Cost Total: The total cost of holding inventory per year (unit: currency/yr)
4. Transaction Cost Total: The total transaction cost per year (unit: currency/yr)
5. Operational Cost Total: The total operational cost per year (unit: currency/yr)
6. Total Cost: The total inventory cost per year (unit: currency/yr)
7. Number of Transactions: The number of transactions per year (unit: 1/yr)
8. Economic Order Quantity: The optimal order quantity (unit: unit)

Any other Instruction

• Make sure to input the values accurately to get correct results.
• If the unit cost is not provided, the material cost and total cost will be displayed as "None".

Steps of Calculation

1. Calculate the Economic Order Quantity (EOQ) using the formula.
2. Determine the number of transactions per year and the order interval.
3. Calculate the total inventory costs including material, inventory, and transaction costs.

Technical Parameters

• demand, transaction_cost, unit_cost, cost_of_capital, cost_of_excess, currency

Return Values

• Order Interval, Material Cost Total, Inventory Cost Total, Transaction Cost Total, Operational Cost Total, Total Cost, Number of Transactions, Economic Order Quantity

Example Expressions

You can use the following expressions to directly evaluate in a non-interactive manner using eva().

eva(eoq('1200 unit/yr', '100 UNC', '5 UNC/unit', '0.2 UNC/UNC/yr', '1 UNC/unit/yr', 'USD'))
eva(eoq('1500 unit/yr', '120 UNC', '6 USD/unit', '0.3 USD/USD/yr', '1 USD/unit/yr', 'USD'))

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