Economic Order Quantity (EOQ) Explorer
Drag the sliders to change parameters. The axes stay fixed — watch the curves move and Q* shift.
Optimal Q*
300
Min Total Cost
$4,800
Ordering at Q*
$2,400
Carrying at Q*
$2,400
12,000
$60
$16
Key Observation: No matter how you adjust D, B, or H, the optimal Q* always lands exactly where the ordering cost curve and carrying cost curve intersect. At that point, ordering cost = carrying cost. This is guaranteed by the AM-GM inequality: for any positive a and b, a + b ≥ 2√(ab), with equality if and only if a = b.