Calculation

Economic Lot Size

Created on · lot-size

Calculates the lot size from setup cost and annual inventory holding cost using the Andler model.

Annual demand

Setup cost per batch

Unit cost

Inventory holding rate

Production rate

How to use the result

Enter actual operating values. The calculation considers only the entered costs and quantities.

x = √(2 · D · setup cost / (unit cost · inventory holding rate · (1 − D/p)))

Sources: Kurt Andler: Rationalization of Production and Optimal Batch Size (1929).