Economic Order Quantity Calculator
Free EOQ Calculator for Smarter Inventory Planning
Trusted by Fashion E-commerce brands:
Insights from 45+ Fashion brands:
Optimal Order Quantity (EOQ) – The ideal units to order each time.
Total Cost Insights – How EOQ minimizes combined ordering and holding costs.
Reorder Recommendations – Helps align orders with demand and cash flow planning.
Running Out of Stock or Overstocked?
Get a FREE Inventory Health Check tailored to your business.
- 📊 Surplus analysis – List for immediate liquidation
- ⭐ 10 hidden Bestseller Styles
- 📉 Find your revenue loss in stockouts
Frequently Asked Questions
Q1. What is the Economic Order Quantity (EOQ) formula, and how is it used?
EOQ = √(2 × Annual Demand × Ordering Cost ÷ Holding Cost). This formula calculates the ideal order quantity that minimizes total inventory costs by balancing ordering frequency and storage expenses. For e-commerce and fashion brands, EOQ helps determine how much of each SKU to order at a time, preventing overstocking or stockouts while optimizing warehouse space and cash flow.
Q2. Why is EOQ critical for e-commerce and fashion brands?
EOQ ensures that brands order the right quantity for each product SKU based on historical demand, supplier costs, and holding expenses. Fashion brands, dealing with seasonal trends and fast-moving styles, can avoid costly overstocks and lost sales from stockouts, while maintaining profitable inventory levels.
Q3. How does EOQ reduce inventory costs in practical terms?
EOQ minimizes costs by reducing both frequent small orders (which increase ordering costs) and excessive inventory (which increases storage costs). For example, a footwear brand that orders 1,000 units instead of 700 for a popular sneaker may tie up cash and risk markdowns; EOQ identifies the optimal number to balance sales and costs.
Q4. Can EOQ help prevent stockouts during peak seasons or promotions?
Yes. By factoring annual demand and order costs, EOQ ensures you maintain sufficient stock without overordering. Combined with safety stock calculations, it provides a safety buffer for seasonal spikes or high-demand promotions like Black Friday or holiday collections.
Q5. How often should EOQ be recalculated for inventory planning?
EOQ should be reviewed whenever there are significant changes in demand, supplier lead times, or holding/ordering costs. Typically, quarterly recalculations or updates before new seasonal launches ensure accurate, cost-effective ordering decisions.
Q6.Can EOQ calculations integrate with safety stock for better planning?
Absolutely. While EOQ determines the optimal order quantity, safety stock accounts for demand fluctuations or supplier delays. Combining both ensures stock is always available without tying up excessive working capital, particularly important for high-demand, seasonal, or trend-sensitive SKUs.
Q7. Is EOQ suitable for multi-warehouse inventory management?
Yes. EOQ can be calculated for each warehouse based on local demand, lead times, and holding costs. For brands selling across multiple regions or marketplaces, this ensures each warehouse maintains optimal stock levels, reducing both stockouts and overstock situations.
Q8. How does lead time affect EOQ decisions and reorder points?
Lead time impacts when you place orders rather than the EOQ itself. By combining EOQ with lead time data, brands can determine reorder points that ensure new stock arrives before inventory runs out. For example, if a supplier has a 14-day lead time, reorder triggers can be set to maintain seamless availability.
Q9. Can EOQ be applied to seasonal or trend-sensitive products?
Yes, but it requires dynamic recalculation based on updated demand forecasts for each season. For limited-edition apparel or holiday-themed items, using EOQ alongside real-time sales data helps prevent excess inventory after the season ends while avoiding missed sales.
Is this software scalable for growing businesses?
Absolutely. This software is designed to grow with your business. You can easily upgrade your plan as your needs change at your own observation.
Is customer support available for SaaSez users?
It is a long-established fact that a reader will be distracted by the readable content of a page when looking at its layout at the point of using lorem Ipsum.
What are the system requirements to use SaaSez and can I customize reports in accoswift?
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Is customer support available for SaaSez users & how often is updated?
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised.
Is this software scalable for growing businesses?
Absolutely. This software is designed to grow with your business. You can easily upgrade your plan as your needs change at your own observation.
Is customer support available for SaaSez users?
It is a long-established fact that a reader will be distracted by the readable content of a page when looking at its layout at the point of using lorem Ipsum.
What are the system requirements to use SaaSez and can I customize reports in accoswift?
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Is customer support available for SaaSez users & how often is updated?
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised.
Is this software scalable for growing businesses?
Absolutely. This software is designed to grow with your business. You can easily upgrade your plan as your needs change at your own observation.
Is customer support available for SaaSez users?
It is a long-established fact that a reader will be distracted by the readable content of a page when looking at its layout at the point of using lorem Ipsum.
What are the system requirements to use SaaSez and can I customize reports in accoswift?
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Is customer support available for SaaSez users & how often is updated?
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised.
Is this software scalable for growing businesses?
Absolutely. This software is designed to grow with your business. You can easily upgrade your plan as your needs change at your own observation.
Is customer support available for SaaSez users?
It is a long-established fact that a reader will be distracted by the readable content of a page when looking at its layout at the point of using lorem Ipsum.
What are the system requirements to use SaaSez and can I customize reports in accoswift?
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Is customer support available for SaaSez users & how often is updated?
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised.