EOQ Model Economic Order Quantity in 13 minutes

Comments

3 responses to “EOQ Model Economic Order Quantity in 13 minutes”

1. 

   16 March 2012

   santosh

   Hai,

   Ur Tutor is so gud to understand.am working on oracle apps.it very helpfull to me.so pls explain, how tha “SETUP/ORDER COST/YEAR=HOLDING/RENT COST/YEAR”.Am little bit confused with the calculation.i understand upto, ordering 269 at a time.tell how this equals as i asked above.am waiting.
   All the above thanks for providing like tuts very usefull for people like us.
   Thanks a lot

   Reply
   1. 

      17 March 2012

      David

      Hi I’m not sure I understand your question… but all we’re saying is that when the setup/order cost per year equals holding/rental cost per year, you have reached EOQ. So you keep trying to find the right number that will make these two sides equal..

      Reply
2. 

   16 January 2016

   usul

   Hello Corporation orders 50,000 units of product a year. Its average carrying cost per unit is 4 and its cost per order is 2.50. Determine the economic order quantity assuming supplier is giving hello a:

   a. 5% cash discount on merchandise purchase
   b. 5% volume discount on merchandise purchase

   Reply