Optimal Batch Size Calculator

Calculate Optimal Batch Size (Q)





Formula

The formula to calculate the Optimal Batch Size (Q) is:

\[ Q = \sqrt{\frac{2DS}{H}} \]

Where:

Definition

Example

Let's say the demand rate (D) is 1000 units, the setup cost (S) is $50, and the holding cost (H) is $2 per unit. Using the formula:

\[ Q = \sqrt{\frac{2 \times 1000 \times 50}{2}} = 223.61 \]

So, the Optimal Batch Size (Q) is approximately 223.61 units.