EOQ_Model - Q = Order Quantity/order Relationships: N = D/Q...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Total Cost as a Function of Order Quantity Order Quantity (Q) Costs of Holding and Ordering Inventory Q* C h (Q/2) C o (D/Q)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Inventory Level Maximum Inventory Level = Q Average Inventory Level = Q /2 Q Q /2 0 Year 1 Inventory Cycle, T
Background image of page 2
C o = Fixed Ordering Cost in $/order C h = Inventory Holding Cost in $/item/year
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Q = Order Quantity/order Relationships: N = D/Q and Q = D/N Ordering Cost = C o ( D/Q ) Holding Cost = C h ( Q /2) Annual Holding and Ordering Cost = C o (D/Q) + C h (Q/2) Economic Order Quantity (EOQ): h o C D C Q 2 * = Cost as a Function of Order Quantity...
View Full Document

Page1 / 3

EOQ_Model - Q = Order Quantity/order Relationships: N = D/Q...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online