Article

Economic Order Quantity: Formula, Calculation, and Examples

Aspire · Aspire Blog Free Beginner

The clearest plain-English walkthrough of EOQ for a founder who never took a supply-chain class, and it makes the case, with numbers, that most founders order 30-50% off the optimal quantity, which is real money left on the table.

  • EOQ balances ordering cost against inventory carrying cost
  • Running the actual formula often reveals orders are 30-50% off optimal
  • The correction typically pays for itself within a few months via freed-up cash
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It answers 2 questions

  1. How much safety stock should I actually be holding on my hero SKU?
  2. My bestseller keeps going out of stock during sales, how do I fix my reorder timing?

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