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EOQ Simulator

You are the inventory manager at MidWest Logistics. Use this simulator to find the optimal order quantity that minimizes your total inventory costs.

1,000 units
$50
$5
Optimal Order Quantity (EOQ)
141
EOQ = √(2DS / H)
Annual Ordering Cost
$354
Annual Holding Cost
$354
Total Annual Cost
$707
Orders per Year
7.1
Time Between Orders
7.3 weeks
? What happens to EOQ when demand doubles?
? Why does the total cost curve flatten near the EOQ?
? What happens when holding costs rise?
Question 1 of 5

Scenario 1

units

Quiz Complete

A
50 / 50