Economic Production Quantity Calculator
Calculate a finite-rate production lot size with inventory building while demand continues.
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Result
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Calculation steps
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How to calculate
Replace instantaneous replenishment with a finite production rate above demand, then minimize annual setup plus holding cost.
EPQ=√(2DS/(H(1−D/P))); average inventory=Q(1−D/P)/2
Worked example
Demand 10000/year, production 50000/year, setup 100 and holding 5 give continuous EPQ √500000≈707.106781 units.
Assumptions and input details
Production must exceed demand. Constant rates/costs, no stockouts, quantity discounts, shared-machine capacity, safety stock or purchase cost. The continuous optimum and adjacent whole-lot cost comparison use the entered single-currency model only.
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
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The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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