This document compares the basic economic order quantity (EOQ) model to a planned shortage model. It provides calculations for both models using sample parameter values of lead time, demand per month, unit cost, holding cost per unit per year, and setup cost. For the basic EOQ model, it calculates the EOQ, reorder point, acquisition cost, setup cost, holding cost, total cost, and total variable cost. For the planned shortage model, it performs similar calculations and compares the key values between the two models.
This document compares the basic economic order quantity (EOQ) model to a planned shortage model. It provides calculations for both models using sample parameter values of lead time, demand per month, unit cost, holding cost per unit per year, and setup cost. For the basic EOQ model, it calculates the EOQ, reorder point, acquisition cost, setup cost, holding cost, total cost, and total variable cost. For the planned shortage model, it performs similar calculations and compares the key values between the two models.
This document compares the basic economic order quantity (EOQ) model to a planned shortage model. It provides calculations for both models using sample parameter values of lead time, demand per month, unit cost, holding cost per unit per year, and setup cost. For the basic EOQ model, it calculates the EOQ, reorder point, acquisition cost, setup cost, holding cost, total cost, and total variable cost. For the planned shortage model, it performs similar calculations and compares the key values between the two models.