Economic Production Quantity Model (EPQ)


The EPQ model uses the same assumptions as the simple or basic EOQ model, except that it use a finite replenishment rate. The assumptions are that demand is known and constant, all costs (holding, ordering, purchase) are known and constant, no quantity discounts apply, and noninstantaneous replenishment (the entire order is produced or delivered over time).

Annual demand
Cost per order
Annual holding cost per unit
Production (or delivery) rate per day
Number of working days per year

Click button to compute statistics



Developed by Dr. Ross L. Fink
23 August 2000