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  • EOQ Calculation

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    jigar kanjani
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    The document provides information on calculating the economic order quantity (EOQ) for inventory management. It lists the annual demand as 5,700 units, a setup cost of $120 per order, and a holding rate of 19%. Using the given formulas, it calculates the EOQ as 600 units, the annual purchase cost as $114,000, annual holding cost as $1,140, and annual ordering cost as $1,140, for a total inventory cost of $116,280.

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    The document provides information on calculating the economic order quantity (EOQ) for inventory management. It lists the annual demand as 5,700 units, a setup cost of $120 per order, and a holding rate of 19%. Using the given formulas, it calculates the EOQ as 600 units, the annual purchase cost as $114,000, annual holding cost as $1,140, and annual ordering cost as $1,140, for a total inventory cost of $116,280.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    4 views1 page

    EOQ Calculation

    Uploaded by

    jigar kanjani
    The document provides information on calculating the economic order quantity (EOQ) for inventory management. It lists the annual demand as 5,700 units, a setup cost of $120 per order, and a holding rate of 19%. Using the given formulas, it calculates the EOQ as 600 units, the annual purchase cost as $114,000, annual holding cost as $1,140, and annual ordering cost as $1,140, for a total inventory cost of $116,280.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    EOQ Calculation

    Annual requ 5,700


    Setup cost $120
    Holding rat 19%
    Unit Cost ($20
    Order lead 6
    Number of 360
    Formulas
    EOQ 600 600

    Annual pur$114,000 114000


    Annual hold$1,140 1140
    Annual ord$1,140 1140
    Total inven$116,280 116280
    Reorder po 95 95
    Number of 10 9.5
    Time betwe 38 36

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