PRESENTED BY

AMRENDRA KUMAR
Cost(Rs)
EOQ Model

Carrying cost

Order Quantity Size

Cost(Rs)
EOQ Model

Carrying cost
Ordering cost

Order Quantity size

 EOQ Model

Total cost curve

Cost(Rs)

Carrying cost
Ordering Cost

Order Quantity size

 EOQ Model

Total Cost Curve

Cost(Rs)

Carrying cost
Ordering Cost
EOQ

Order Quantity
 Advantages of EOQ

 (EOQ) is the order quantity that minimizes total

holding and ordering costs for the year.
 EOQ technique is highly useful in as much it
answers the question of how much to order.
 An inventory-related equation that determines the
optimum order quantity .
 EOQ may not apply to every inventory situation, but
most organizations will find it beneficial in at least
some aspect of their operation.