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EOQ Calculator with Price Breaks

The textbook economic order quantity ignores the things that decide real orders: vendor price breaks, case packs, minimum orders and shelf life. This calculator includes them and shows what the right order size saves against what you order today.

  • Quantity discounts
  • Case-pack rounding
  • Shelf-life cap
  • No sign-up

01Item & demand

tins

02Costs

$

Buyer time, receiving, AP, delivery fee

%/yr

Of unit price; 20–30% is typical

03Vendor price breaks

From qtyUnit price
  • $
  • $
  • $

04Real-world limits

tins

Order in whole cases

tins

0 = none

days

0 = doesn’t expire

tins

For the savings comparison

Order this many

500tins

125 cases of 4 · $25.20 per tin

  • Ordering up to the next price break saves more on unit price than it adds in holding cost. The textbook answer would be 179 tins.
Orders a year
4.8
Every
76 days
Annual total cost
$62.2K
Saved vs. today
$6,611

05Today vs. optimal

Annual costToday · 80 tinsOptimal · 500 tinsDifference
Purchase price$67,200$60,480−$6,720
Ordering$1,350$216−$1,134
Holding$269$1,512+$1,243
Total$68,819$62,208−$6,611

06Total annual cost by order size

The drops are your vendor’s price breaks. The cheapest point on the curve is the order size to use, as long as it stays below the shelf-life limit of 1,183 tins.

$65K$70K$75K250 tins500 tins750 tins1,000 tinsORDER QUANTITY$26.50$25.20
  • Optimal
  • What you order today
  • Price break / shelf-life limit

07Ordering vs. holding cost

Small, frequent orders cost more in ordering; large orders cost more to hold. The textbook EOQ (179 tins) is where the two curves cross, before price breaks and limits.

  • Ordering cost
  • Holding cost
$0$1K$2K$3K$4K250 tins500 tins750 tins1,000 tinsORDER QUANTITYEOQ

1 SKU · $6,611 a year

That is one item. Across 1,800 SKUs and a dozen sites, nobody has time to work out the right order size for each, so they don’t.

Bollard sizes every replenishment order from live demand, vendor price breaks, case packs and shelf life, and shows each site’s buyers when a bigger order earns the next price break.

See smart reordering in Bollard

Method

From textbook EOQ to an order size you can use

Annual cost at order size Q is D·p + (D/Q)·S + (Q/2)·i·p: purchase cost, ordering cost and holding cost, where the unit price p depends on the price break Q falls in.

For each price tier the calculator finds the classic EOQ at that tier’s price, moves it into the tier’s quantity range, and rounds to whole case packs. It then applies the vendor minimum and the shelf-life cap (annual demand ÷ 365 × shelf-life days) and picks the cheapest option.

The result also tells you which limit set the answer, so you can see whether a price break or shelf life decided it.

Read the guide: Economic order quantity: when the textbook answer costs you money

From one site to every site

Order sizes depend on demand, prices and pack sizes, and all three change.

Bollard sizes every replenishment order from live usage at each site and your vendors’ current price breaks, case packs and minimums, and shows buyers when consolidating orders across sites earns a better price.

  • Order quantities from live demand per site
  • Vendor price breaks and case packs in the catalog
  • Cross-site consolidation to reach price breaks
  • Shelf-life aware ordering for perishables
See Bollard in action

Questions

Frequently asked

What is the EOQ formula?+

Economic order quantity = √(2DS / H), where D is annual demand in units, S is the cost of placing one order and H is the annual cost of holding one unit (here, holding cost % × unit price). It is the order size where annual ordering cost and annual holding cost are equal.

How do quantity discounts change the EOQ?+

With price breaks, the cheapest total cost often sits at the minimum quantity of a discount tier rather than at the textbook EOQ. The calculator compares each tier’s best order size, including the purchase price, and picks the lowest total annual cost.

What should I include in the cost per order?+

The cost of the people and systems involved in one order: raising and approving the PO, receiving and checking the delivery, matching and paying the invoice, plus any per-delivery fee from the vendor. For multi-site organisations this is often $30 to $150 per order.

What is a typical holding cost percentage?+

Usually 20 to 30 percent of item value a year. It combines the cost of capital, storage space, insurance, shrinkage and obsolescence or spoilage. Perishable and high-shrink items run higher.

Why does shelf life cap the order quantity?+

Ordering more than you can use before it expires turns a unit-price saving into waste. The cap is annual demand ÷ 365 × shelf life in days, and the calculator will not recommend a quantity above it.

Is my data uploaded?+

No. Everything runs in your browser, and share links keep your inputs in the URL.

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Free tools, no sign-up. Your figures are processed in your browser and are not uploaded to a server unless you ask us to email you a result. Results are estimates for planning and do not constitute financial, legal or tax advice.