BASIC EOQ MODEL

D
P
C
H

Annual Demand Quantity of the Product

Purchase Cost per Unit
Fixed Cost per Order
Annual Holding Cost per Unit
(warehouse space, refrig., ins., etc.)

EOQ Economic Order Quantity

(optimal order quantity)

1,000
1.00
30.00
0.30

Costs with EOQ

Average Annual Purchas
Average Annual Fixed O
Average Annual Holding
Total:

447.21

Try different order quan

500.00

Costs by Order Quantity

450.00
400.00
350.00
300.00
Holding Cost
Ordering Cost
Total Cost

250.00
200.00
150.00
100.00
50.00
0.00
-50.00

Since the demand will be satisfied with the unit purchase cost any way, it is discarded from the model. The cost in
2 types: Holding Cost and Ordering Cost. The tradoff between these costs is optimized at the minimum point of th
EOQ is the level of the inventory where ordering cost and carrying cost remains equal.

DEL
####

Costs with EOQ

Average Annual Purchase Cost:
Average Annual Fixed Order Cost:
Average Annual Holding Cost:
Total:

1,000.00
67.08
67.08
1,134.16

Try different order quantities:

Inventory Level

m the model. The cost in consideration is reduced to

the minimum point of the Total Cost Curve, i.e. EOQ.

500.00

Follow the steps to enable your online EOQ Analyzer.

>>

EOQ model uses the below assumptions:

1. The ordering cost is constant.
2. The rate of demand is constant
3. The lead time is fixed
4. The purchase price of the item is constant i.e no discount is available
5. The replenishment is made instantaneously, the whole batch is delivered at once.
The template allows you to compare EOQ with any other order quantity.

>>

Your EOQ Analyzer is ready to use. Following steps are for online use.

1)

Visit the site below:

http://www.spreadsheetweb.com/getting_started.htm
You will only need the username and password to create your online EOQ Analyzer.

2)

Visit the site below:

https://www4.spreadsheetweb.com/SpreadsheetWEB//
Login to page with your new account information.

3)

Click "Add Web Application" to upload this file. Your file will be created automatically.
You can simply use the file from that link or place it on your website.

>>

Your online EOQ Analyzer will look like:

https://www4.spreadsheetweb.com/SpreadSheetWEB/Output.aspx?ApplicationId=0cd5db37-f477-47b4-891d-475c4060b3b2

>>

In order to see more online applications created with PSW you can check the link below:
http://www.spreadsheetweb.com/demos.htm

Copyright (c) 2009 Pagos, Inc., http://www.pagos.com/

-47b4-891d-475c4060b3b2

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4.472135955
447.21
442.74
438.27
433.80
429.33
424.85
420.38
415.91
411.44
406.96
402.49
398.02
393.55
389.08
384.60
380.13
375.66
371.19
366.72
362.24
357.77
353.30
348.83
344.35
339.88
335.41
330.94
326.47
321.99
317.52
313.05
308.58
304.11
299.63
295.16
290.69
286.22
281.74
277.27
272.80
268.33
263.86
259.38
254.91
250.44

5
100
105
110
115
120
125
130
135
140
145
150
155
160
165
170
175
180
185
190
195
200
205
210
215
220
225
230
235
240
245
250
255
260
265
270
275
280
285
290
295
300
305
310
315

Holding Cost
Ordering Cost Total Cost
15
300
315
15.75 285.7142857 301.4642857
16.5 272.7272727 289.2272727
17.25 260.8695652 278.1195652
18
250
268
18.75
240
258.75
19.5 230.7692308 250.2692308
20.25 222.2222222 242.4722222
21 214.2857143 235.2857143
21.75 206.8965517 228.6465517
22.5
200
222.5
23.25 193.5483871 216.7983871
24
187.5
211.5
24.75 181.8181818 206.5681818
25.5 176.4705882 201.9705882
26.25 171.4285714 197.6785714
27 166.6666667 193.6666667
27.75 162.1621622 189.9121622
28.5 157.8947368 186.3947368
29.25 153.8461538 183.0961538
30
150
180
30.75 146.3414634 177.0914634
31.5 142.8571429 174.3571429
32.25 139.5348837 171.7848837
33 136.3636364 169.3636364
33.75 133.3333333 167.0833333
34.5 130.4347826 164.9347826
35.25 127.6595745 162.9095745
36
125
161
36.75 122.4489796 159.1989796
37.5
120
157.5
38.25 117.6470588 155.8970588
39 115.3846154 154.3846154
39.75 113.2075472 152.9575472
40.5 111.1111111 151.6111111
41.25 109.0909091 150.3409091
42 107.1428571 149.1428571
42.75 105.2631579 148.0131579
43.5 103.4482759 146.9482759
44.25 101.6949153 145.9449153
45
100
145
45.75 98.36065574 144.1106557
46.5 96.77419355 143.2741935
47.25 95.23809524 142.4880952

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71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91

245.97
241.50
237.02
232.55
228.08
223.61
219.13
214.66
210.19
205.72
201.25
196.77
192.30
187.83
183.36
178.89
174.41
169.94
165.47
161.00
156.52
152.05
147.58
143.11
138.64
134.16
129.69
125.22
120.75
116.28
111.80
107.33
102.86
98.39
93.91
89.44
84.97
80.50
76.03
71.55
67.08
62.61
58.14
53.67
49.19
44.72
40.25

320
325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500
505
510
515
520
525
530
535
540
545
550

48
48.75
49.5
50.25
51
51.75
52.5
53.25
54
54.75
55.5
56.25
57
57.75
58.5
59.25
60
60.75
61.5
62.25
63
63.75
64.5
65.25
66
66.75
67.5
68.25
69
69.75
70.5
71.25
72
72.75
73.5
74.25
75
75.75
76.5
77.25
78
78.75
79.5
80.25
81
81.75
82.5

93.75
92.30769231
90.90909091
89.55223881
88.23529412
86.95652174
85.71428571
84.50704225
83.33333333
82.19178082
81.08108108
80
78.94736842
77.92207792
76.92307692
75.94936709
75
74.07407407
73.17073171
72.28915663
71.42857143
70.58823529
69.76744186
68.96551724
68.18181818
67.41573034
66.66666667
65.93406593
65.2173913
64.51612903
63.82978723
63.15789474
62.5
61.8556701
61.2244898
60.60606061
60
59.40594059
58.82352941
58.25242718
57.69230769
57.14285714
56.60377358
56.07476636
55.55555556
55.04587156
54.54545455

141.75
141.0576923
140.4090909
139.8022388
139.2352941
138.7065217
138.2142857
137.7570423
137.3333333
136.9417808
136.5810811
136.25
135.9473684
135.6720779
135.4230769
135.1993671
135
134.8240741
134.6707317
134.5391566
134.4285714
134.3382353
134.2674419
134.2155172
134.1818182
134.1657303
134.1666667
134.1840659
134.2173913
134.266129
134.3297872
134.4078947
134.5
134.6056701
134.7244898
134.8560606
135
135.1559406
135.3235294
135.5024272
135.6923077
135.8928571
136.1037736
136.3247664
136.5555556
136.7958716
137.0454545

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29
30
31
32
33
34
35
36
37

35.78
31.30
26.83
22.36
17.89
13.42
8.94
4.47
0.00
447.21
442.74
438.27
433.80
429.33
424.85
420.38
415.91
411.44
406.96
402.49
398.02
393.55
389.08
384.60
380.13
375.66
371.19
366.72
362.24
357.77
353.30
348.83
344.35
339.88
335.41
330.94
326.47
321.99
317.52
313.05
308.58
304.11
299.63
295.16
290.69
286.22
281.74

555
560
565
570
575
580
585
590
595
600
605
610
615
620
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630
635
640
645
650
655
660
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670
675
680
685
690
695
700
705
710
715
720
725
730
735
740
745
750
755
760
765
770
775
780
785

83.25
84
84.75
85.5
86.25
87
87.75
88.5
89.25
90
90.75
91.5
92.25
93
93.75
94.5
95.25
96
96.75
97.5
98.25
99
99.75
100.5
101.25
102
102.75
103.5
104.25
105
105.75
106.5
107.25
108
108.75
109.5
110.25
111
111.75
112.5
113.25
114
114.75
115.5
116.25
117
117.75

54.05405405
53.57142857
53.09734513
52.63157895
52.17391304
51.72413793
51.28205128
50.84745763
50.42016807
50
49.58677686
49.18032787
48.7804878
48.38709677
48
47.61904762
47.24409449
46.875
46.51162791
46.15384615
45.80152672
45.45454545
45.11278195
44.7761194
44.44444444
44.11764706
43.79562044
43.47826087
43.16546763
42.85714286
42.55319149
42.25352113
41.95804196
41.66666667
41.37931034
41.09589041
40.81632653
40.54054054
40.26845638
40
39.73509934
39.47368421
39.21568627
38.96103896
38.70967742
38.46153846
38.21656051

137.3040541
137.5714286
137.8473451
138.1315789
138.423913
138.7241379
139.0320513
139.3474576
139.6701681
140
140.3367769
140.6803279
141.0304878
141.3870968
141.75
142.1190476
142.4940945
142.875
143.2616279
143.6538462
144.0515267
144.4545455
144.862782
145.2761194
145.6944444
146.1176471
146.5456204
146.9782609
147.4154676
147.8571429
148.3031915
148.7535211
149.208042
149.6666667
150.1293103
150.5958904
151.0663265
151.5405405
152.0184564
152.5
152.9850993
153.4736842
153.9656863
154.461039
154.9596774
155.4615385
155.9665605

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67
68
69
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73
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75
76
77
78
79
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81
82
83
84

277.27
272.80
268.33
263.86
259.38
254.91
250.44
245.97
241.50
237.02
232.55
228.08
223.61
219.13
214.66
210.19
205.72
201.25
196.77
192.30
187.83
183.36
178.89
174.41
169.94
165.47
161.00
156.52
152.05
147.58
143.11
138.64
134.16
129.69
125.22
120.75
116.28
111.80
107.33
102.86
98.39
93.91
89.44
84.97
80.50
76.03
71.55

790
795
800
805
810
815
820
825
830
835
840
845
850
855
860
865
870
875
880
885
890
895
900
905
910
915
920
925
930
935
940
945
950
955
960
965
970
975
980
985
990
995
1000

118.5
119.25
120
120.75
121.5
122.25
123
123.75
124.5
125.25
126
126.75
127.5
128.25
129
129.75
130.5
131.25
132
132.75
133.5
134.25
135
135.75
136.5
137.25
138
138.75
139.5
140.25
141
141.75
142.5
143.25
144
144.75
145.5
146.25
147
147.75
148.5
149.25
150

37.97468354
37.73584906
37.5
37.26708075
37.03703704
36.80981595
36.58536585
36.36363636
36.14457831
35.92814371
35.71428571
35.50295858
35.29411765
35.0877193
34.88372093
34.68208092
34.48275862
34.28571429
34.09090909
33.89830508
33.70786517
33.51955307
33.33333333
33.14917127
32.96703297
32.78688525
32.60869565
32.43243243
32.25806452
32.0855615
31.91489362
31.74603175
31.57894737
31.41361257
31.25
31.0880829
30.92783505
30.76923077
30.6122449
30.45685279
30.3030303
30.15075377
30

156.4746835
156.9858491
157.5
158.0170807
158.537037
159.059816
159.5853659
160.1136364
160.6445783
161.1781437
161.7142857
162.2529586
162.7941176
163.3377193
163.8837209
164.4320809
164.9827586
165.5357143
166.0909091
166.6483051
167.2078652
167.7695531
168.3333333
168.8991713
169.467033
170.0368852
170.6086957
171.1824324
171.7580645
172.3355615
172.9148936
173.4960317
174.0789474
174.6636126
175.25
175.8380829
176.4278351
177.0192308
177.6122449
178.2068528
178.8030303
179.4007538
180

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86
87
88
89
90
91
92
93
94
95
96
97
98
99
100

67.08
62.61
58.14
53.67
49.19
44.72
40.25
35.78
31.30
26.83
22.36
17.89
13.42
8.94
4.47
0.00