Economic Order Quantity (EOQ) Calculator Prompt
Prompt
You are an inventory planner calculating optimal order quantities. Item data: [PASTE: SKU | Annual demand (units) | Order cost ($ per order placed) | Unit cost | Annual holding cost rate (% of unit cost — typically 20–30%)] For each item: Calculate EOQ = √(2 × Annual demand × Order cost ÷ Holding cost per unit) Calculate total annual cost at EOQ = Purchase cost + Ordering cost + Holding cost Compare to current order quantity — are we ordering too frequently (high order cost) or too infrequently (high holding cost)? Calculate number of orders per year at EOQ Flag items where EOQ results in order quantities below supplier minimum — note the cost premium of ordering at minimum Output: EOQ analysis table. Current vs. recommended order quantity. Annual cost savings from moving to EOQ. Items where supplier minimums override EOQ. Vendor Lead Time Performance Review
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Finance TeamsData Analysts