# Infor LN EOQ Order Quantity Calculator

> Source: https://netray.co/tools/infor-ln-eoq-order-quantity-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Calculate economic order quantity, orders per year and total annual cost, then use the result to set LN item ordering data.

## Category

infor-ln

## Erp

Infor LN

## Audience

- Planner
- Materials manager
- LN consultant

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Annual demand

**Key:** annual_demand

**Type:** number

**Default:** 12000

**Min:** 1

**Step:** 100

**Unit:** units

**Help:** Forecast or last 12 months of issues for the item.

#### Cost per order or setup

**Key:** order_cost

**Type:** number

**Default:** 85

**Min:** 0

**Step:** 5

**Unit:** $

**Help:** Buyer time, receiving and admin for a purchase order, or setup cost for a production order.

#### Unit cost

**Key:** unit_cost

**Type:** number

**Default:** 14.5

**Min:** 0.01

**Step:** 0.5

**Unit:** $

#### Annual holding cost

**Key:** hold_pct

**Type:** number

**Default:** 22

**Min:** 1

**Max:** 80

**Step:** 1

**Unit:** % of unit cost

**Help:** Capital, storage, insurance, obsolescence. 18 to 30 percent is typical.

#### Working days per year

**Key:** work_days

**Type:** number

**Default:** 250

**Min:** 100

**Max:** 365

**Step:** 5

**Unit:** days

**Outputs:**

#### Holding cost per unit per year

**Key:** hold_unit

**Expr:** unit_cost * hold_pct / 100

**Format:** currency

#### Economic order quantity

**Key:** eoq

**Expr:** sqrt(2 * annual_demand * order_cost / hold_unit)

**Format:** integer

**Primary:** true

**Description:** Candidate value for the LN order quantity or lot size.

#### Orders per year

**Key:** orders

**Expr:** annual_demand / eoq

**Format:** decimal

#### Days between orders

**Key:** interval

**Expr:** work_days / orders

**Format:** days

**Description:** Candidate for an order interval if you plan by period.

#### Total annual cost

**Key:** total

**Expr:** annual_demand * unit_cost + orders * order_cost + eoq / 2 * hold_unit

**Format:** currency

**Primary:** true

**Description:** Purchase cost plus ordering cost plus holding cost.

**Chart:**

#### EOQ vs cost per order

**Type:** line

**X:** order_cost

**From:** 10

**To:** 300

**Steps:** 30

**Series:**

- eoq

**Disclaimer:** Classic EOQ assumes steady demand and no quantity discounts. Check supplier minimums, pack sizes and price breaks before changing LN item data.

## Content

**Intro:** Setting order quantity in Infor LN is often a guess carried over from Baan days. This calculator gives you the economic order quantity from demand, ordering cost and holding cost so you can defend the number. It runs in your browser and exports to PDF or Excel.

**Sections:**

#### How to use it

**Body:** Enter annual demand, the cost of placing one order (or one production setup), the unit cost and the annual holding rate. Read the economic order quantity and the days between orders. Compare the total annual cost with the cost at your current order quantity to see whether a change is worth making. Then apply the rounded result to the item ordering data in LN, for example the order quantity or economic order quantity field on the item, following your planning policy.

**Bullets:**

- Use net demand, not gross, if you hold stock for kits only
- Include setup labor and scrap in the order cost for production items
- Round EOQ to the supplier pack size

#### The formula

**Body:** EOQ equals the square root of two times annual demand times order cost divided by holding cost per unit per year. At the EOQ, ordering cost and holding cost are equal, which is why total cost is flat near the optimum. A 20 percent error in EOQ changes total relevant cost by only a small amount, so do not chase decimals. The chart sweeps order cost to show how the lot size reacts to a better or worse ordering process.

#### Common mistakes

**Body:** The most frequent error is an inflated holding rate that pushes EOQ down to uneconomic small lots. The second is ignoring quantity breaks: if a supplier gives 8 percent off at a larger quantity, compare total cost at both quantities. Third, treating EOQ as a rule for constrained items: for long lead time or capacity limited items, lot size is set by the constraint, not by cost trade-off.

**Cta:** If you want order quantity recommendations calculated across your whole LN item master with the query shown, we can set that up read-only on your data.

**Faq:**

#### Does Infor LN calculate EOQ for me?

**Answer:** LN holds order quantity and related ordering fields on the item, but the optimal value is your policy decision. This calculator helps you derive a defensible figure, which you then enter in the item data or load through your normal data maintenance process.

#### What holding cost percentage should I use?

**Answer:** Many manufacturers land between 18 and 30 percent of unit cost per year, made of cost of capital, storage, handling, insurance and obsolescence risk. Ask finance for the capital rate and keep the other parts to documented, measurable costs.

#### Can I use it for manufactured items?

**Answer:** Yes. Replace the ordering cost with the setup cost per production order, including setup labor, machine time lost and first piece scrap. The unit cost is the standard or average manufacturing cost.

#### When is EOQ not appropriate?

**Answer:** Lumpy or project demand, items with heavy price breaks, perishable items and bottleneck resources. In those cases use a lot-for-lot policy or a constraint based lot size instead of a cost trade-off.

## Search terms

infor ln economic order quantity, ln order quantity calculation, eoq calculator for erp, infor ln item ordering data, baan lot size eoq, optimal order quantity calculator, ln planning lot size

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