Economic Ordering Quantity (EOQ) Model

Demand [D] (week or year)

Ordering Cost [S]
Carrying Cost/item [H]*
Price of the Item [p]

EOQ = #DIV/0!

Order Cycle = #DIV/0! times (in a week or year)

Average Inventory = #DIV/0!

Holding Cost = #DIV/0!

Carrying Cost = #DIV/0!
Total Cost = #DIV/0!

Investment Cost = #DIV/0! (If price of item is known)

* must be calculated as same period length of Demand.

 Multi-Item Inventory - EOQ and ABC Clasification

Annual Item
Weekly Annual Item Price/ Carrying Odering Carrying
Item No. Demand Deamnd Unit cost Rate Cost Cost
110-3122B 0 15 1305.00 10% 0
130.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Investment cost represents the money spent to acquire the items or what has been paid for the inventory in stock.
These costs are recovered once items are used, and reinvested in another cycle of ordering.

The inventory management costs are the costs involved in managing, maintaining and reordering the
stock of items. It includes the holding (carrying) costs (interest, insurance
obsolescence,deterioration, spoilage, pilfering and breakage.) and order (administrative) costs.
 Total Total
Cost of Lengt of Annual
Carrying Ordering Inventory Order Cycle Investment Costs
EOQ Cost Cost Management in Days Cost (Volume)

0.0 0.00 #DIV/0! #DIV/0! 0 0.00 19575.00

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.00

Overall Total #DIV/0! #DIV/0! $ 19,575.00

* Assumes >15% of dollar volume is A , < 1% is C item

ventory in stock.
Percentage
of Total
Annual ABC
Cost Class*

100.00% A
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C
0.00% C