which is the correct formula for the economic order quantity

which is the correct formula for the economic order quantity is a question commonly asked by inventory and logistics managers. The correct EOQ formula is √(2DS/H), where D is demand, S is the ordering cost, and H is the holding cost per unit per year. This model helps businesses minimize total inventory costs by optimizing the quantity ordered each time. By applying EOQ, companies can reduce overstocking and understocking, improve cash flow, and maintain smoother operations in supply chain management.