Calculating the EOQ for Parts

EOQ represents Economic Order Quantity for parts in inventory. When a user has set the Order Method to EOQ, and runs the calculation from iMaint Admin, the results will display with a filed located on the Part form. To calculate the EOQ, you will need to set a Cost of Handling a PO on the Site form. Then mark individual part records to use EOQ as the Order Method. You will also need to supply an Annual Carrying Cost and Standard Order Quantity for use in the calculation. Once you set the correct settings, run the EOQ program from iMaint Admin to display your EOQ for the part.

EOQ Setup

Before you run the program there are set up requirements.

Define the Order Method as EOQ and Annual Carrying Cost and Standard Order Quantity for each part record you wish to calculate. Make sure you set the Order Method on each individual part record you wish to be included in the calculation to EOQ. You will also need to supply a Annual Carrying Cost for use in the calculation. This is the dollar value associated with storing and holding this part for one year. The dollar entered should be based on one issue unit. If you use the EOQ Order Method, you must enter an Annual Carrying Cost, but it will default to one dollar. Please, also define the Standard Order Quantity, which is part of the Annual Carrying Cost calculation. Once the program is run, you will see the EOQ results display under the Order Method field.

You must set a Cost for Handling a PO on the Site form, under the Inventory/Purchasing tab.

EOQ Calculation

EOQ

Annual Carrying Cost Per Unit:

Q = (2I*P/T) to the 0.5 power.

Q = Economic Order Quantity

I = number of issued units per year

P = cost of handling a single PO

T = annual carrying cost per unit

T = UI + DS/2 + PI/S

U = Unit cost of items (in dollars)

I = number of issued units per year

D = annual carrying cost per unit

S = Standard Order Quantity

P = cost of handling a single PO

Running the Calculation

The EOQ program can be run from the iMaint Admin navigation tree. Click on EOQ to open the form.

You may filter the part records to be processed through the program. Click on Filter to open the window, set your criteria and click Apply Filter. If you click run without a filter, only the part records with the Order Method set to EOQ will be processed.

A message with the number of records returned as a result of your filter will display. Depending upon the results, you may choose to Filter again, or Run EOQ.

Once complete, the window will display a message that the process ran successfully.

Once you run the program, your EOQ results will appear on each part record on the Warehouse tab. Look for the EOQ field under the Order sub tab directly under the Order Method.