The Economic Order Quantity (EOQ) formula is a critical tool for businesses looking to determine their optimal amount of inventory. By using the EOQ formula, businesses can calculate the ideal inventory level that best meets customer demand while minimizing costs at the same time. The equation helps identify how often businesses should order products, the quantity they should order each time, and how much they should carry in terms of a safety stock. In other words, the EOQ formula helps businesses maximize efficiency while staying within budget. With just a few simple calculations, businesses can make sure they have just enough inventory to satisfy customer needs – no more, no less.