what is the economic order quantity formula

what is the economic order quantity formula is a mathematical formula used by businesses to determine the optimal order size that minimizes the total cost of inventory, including ordering costs and holding costs. The formula is EOQ = √(2DS/H), where D is the demand rate, S is the ordering cost per order, and H is the holding cost per unit. Using the EOQ formula helps businesses maintain efficient inventory levels while avoiding overstocking or stockouts.