EOQ formula mentioned earlier is usually applicable to operations where demand is relatively steady. Even though, it can also be used in the cases where demand varies. In those cases the standard formula for EOQ can still be applied to shorter periods where demand is steady.
There are also some research papers available on the optimal order quantity calculation for changing demand, for exapmle: An Economic Order Quantity Model For Time-Varying Demand.
The reorder point can be automatically calculated in standard AX using Safety Stock journals. The functionality for automatic Economic Order Quantity calculations is available in Microsoft partner solutions, particularly for the wholesale industry.
Automatic calculation of EOQ should be used cautiously - you need to understand exactly what algorithm is used in the system and have correct input data required for EOQ calculation.
© Andrey Maslov
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