BART'S ECONOMIC ORDER QUANTITY Econ. Order Qnty.

Request. Order Qnty

Annual Demand 500 % Change from EOQ
Ordering Cost $80.00
Annual Holding Rate % 20 Annual Holding Cost
Cost Per Unit $50.00 Annual Order. Cost
Working Days Per Year 300 Tot. Ann. Cost (TAC)
Lead Time (Days) 60 % Over Minimum TAC

Econ. Order Qnty. 89.44 Max. Inventory Level

Request. Order Qnty. 75.00 Avg. Inventory Level
% Change from EOQ -16.15 Reorder Point

Annual Holding Cost $447.21 $375.00 No. of Orders/Year

Annual Order. Cost $447.21 $533.33 Cycle Time (Days)
Tot. Ann. Cost (TAC) $894.43 $908.33
% Over Minimum TAC 1.55

Max. Inventory Level 89.44 75

Avg. Inventory Level 44.72 37.5
Reorder Point 100 100 100>max inventory 89.44
So, when to reorder?
No. of Orders/Year 5.59 6.67
Cycle Time (Days) 53.67 45.00
 =SQRT(2*B3*B4/(B5*B6/100))

=(C11/B10-1)*100

=B5/100*B6*B10/2 =B5/100*B6*C11/2
=B4*B3/B10 =B4*B3/C11
=B14+B15 =C14+C15
=(C16/B16-1)*100

=B10 =C11
=B10/2 =C11/2
=B3/B7*B8 =B3/B7*B8

=B3/B10 =B3/C11
=B10/B3*B7 =C11/B3*B7

ventory 89.44