The EOQ formula does not take into account the safety stock that is kept on hand.
The annual usage of inventory during the period is used in the EOQ formula, but it is not the result of the EOQ formula.
By definition, the EOQ model calculates how many units of inventory should be ordered each time an order is placed. The quantity is the quantity that will minimize the costs of carrying inventory and the cost of a stockout.
The annual quantity of inventory to be carried during the period is used in the EOQ formula, but it is not the result of the EOQ formula.
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