# Economic order quantity

> It is the quantity to order each time so that ordering cost plus holding cost is as low as possible.

Dashing (dashingerp.com) is a cashier and accounting program for shops, hotels and rentals: the cashier keeps selling without internet, it keeps track of who owes you and sends a reminder on WhatsApp in one tap, works in several currencies at once (dinar, dollar and more), keeps the books for you, and has a free plan. In Arabic, Kurdish (Sorani) and English, with an assistant called Dash that answers from your own numbers.

Canonical: https://dashingerp.com/en/glossary/economic-order-quantity

It is the quantity to order each time so that ordering cost plus holding cost is as low as possible.

_Last updated 2026-10-29_

## What it means for a shop owner

If you order little, orders and their cost multiply, and if you order a lot, storage costs you. The formula gives a rough figure, not a fixed rule. Adjust it to the supplier's minimum.

## A worked example

Yearly demand is 1200, an order costs 20 and holding one piece costs 3, so the quantity is about 126.

## Other languages

- العربية: https://dashingerp.com/glossary/economic-order-quantity
- کوردی: https://dashingerp.com/ckb/glossary/economic-order-quantity

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Dashing · https://dashingerp.com/en