MOQ, EOQ and Order Frequency
Economic order quantity balances the cost of placing orders against the cost of holding stock. Minimum order quantities (MOQ) may force larger buys.
Formulas
| Term | Formula |
|---|---|
| EOQ | square root of (2 x annual demand x order cost / annual holding cost per unit) |
| Orders per year | Annual demand / order quantity |
| Average inventory | Order quantity / 2 + safety stock |
These tables carry the same figures as the printed sheet below.
The printed sheet
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Text version of this sheet
MOQ, EOQ and order frequency
What it is
AT A GLANCE
MAX
Economic order quantity balances the cost of placing orders against the cost of holding stock.
Minimum order quantities (MOQ) may force larger buys.
MIN
Balance order cost against carrying cost
Formulas
Term
Formula
EOQ
square root of (2 x annual demand x order cost / annual holding cost per unit)
Orders per year
Annual demand / order quantity
Average inventory
Order quantity / 2 + safety stock
Key points
For cheap fasteners, holding cost is small, so larger, less frequent orders are often cheapest.
Governing standards: Inventory management practice. Editions shown are the latest confirmed as of September 2026. The drawing and the governing standard always take
precedence over this sheet.
torquing any fastener. Verify the current governing standard, project documents, OEM requirements, size, thread, coating and lot certification. To the fullest extent permitted by law, The Fastener App disclaims liability
arising from reliance on this reference.
Fastener Guide reference FG-4AD848 · thefastenerapp.com/fastener-guide/procurement/moq-eoq-and-order-frequency · © The Fastener App. Reference only — verify the current governing standard, drawing and manufacturer data before specifying or installing.
