ERP & MRP Planning worked example

Economic Order Quantity with annual demand quantity of 60,000 units / yr: a worked example

This scenario runs the economic order quantity calculation on the strong side: annual demand quantity of 60,000 units / yr, with every other input held at its documented default. a materials planner needs a quick production or purchase lot-size check

The inputs for this scenario

  • Annual demand quantity: 60,000 units / yr (raised for this scenario; the documented default is 24,000)
  • Planned order cycles per year: 48 orders / yr (unchanged)
  • Lot-size adjustment factor: 1.1 x (unchanged)

Working through the calculation

  • Applying the documented formula (Planning order quantity = annual demand quantity ÷ planned order cycles per year × lot-size adjustment factor) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,375 units for estimated economic order quantity, the number this scenario is built around.
  • At this operating point the engine returns 1,250 units for average quantity per order cycle.
  • At this operating point the engine returns 1.1 x for lot-size adjustment factor.
  • At this operating point the engine returns 48 orders / yr for planned order cycles per year.

How this compares with the baseline

  • Against the tool's baseline example, where annual demand quantity sits at 24,000 units / yr and the headline result is 550 units, this scenario comes in 150% above the baseline at 1,375 units.
  • Use it when setting or reviewing lot-sizing parameters in ERP/MRP for a part, before applying min, max, fixed, or multiple lot-size rules. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Estimated economic order quantity: 1,375 units (headline result)
  • Average quantity per order cycle: 1,250 units
  • Lot-size adjustment factor: 1.1 x
  • Planned order cycles per year: 48 orders / yr

Run it with your numbers

  • Every input above is editable in the live Economic Order Quantity calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.