Generalized Economic Order Quantity (EOQ)

Input data: Enter -1 in column C if data element is not applicable to your model Item cost, c1 = -1 Qty discount limit, q = -1 Item cost, c2 = -1 Setup cost, K = 100 Demand rate, D = 30 Production rate, a = -1 Unit holding cost, h = 0.05 Unit penalty cost, p = -1 Lead time, L = 30 Model output results: Order qty, y* = 346.41 Shortage qty, w* = 0.00 Reorder point, R = 207.18 TCU(y*) = 17.32 Purchase/prod. Cost = 0.00 Setup cost/unit time = 8.66 Holding cost /unit time = 8.66 shortage cost/unit time = 0.00 Optimal inventory policy: Order 346.41 units whenever level drops to 207.18 units Model intermediate calculations: ym = 346.41 TCU1(ym)= Not applicable Q-equation: Not applicable Q= Not applicable cycle length, t0 = 11.55 Optimization zone = Not applicable Effectice lead time, Le = 6.91