Economic Order Quantity (EOQ)
EOQ = √(2·D·K / h) - order-size that minimises total ordering + holding cost for a spare.
EOQ
32units
Orders / year
1.9 -
Formula, assumptions, and limits
Wilson EOQ formula. Assumes constant demand, instant replenishment, no stock-out cost. For critical spares add safety stock (see dedicated calc). Holding cost includes capital × discount rate + storage + deterioration.
Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| Annual demand | units | maintenance history | |
| Order setup cost | USD | procurement | |
| Holding cost per unit per year | USD | inventory policy |