what is the economic order quntity if the annual demand is 15000 cases the unit cost is 3.80 the ordering cost is 45 per order

Respuesta :

if the annual demand is 15000 cases, the Economic Order Quantity is 1333

The economic order quantity (EOQ) is a company's ideal order number that satisfies demand while lowering its overall expenses associated with placing orders, receiving deliveries, and maintaining inventories. The economic order quantity formula functions best when demand, ordering, and holding costs are stable across time. The order size in inventory management that minimizes overall holding costs and ordering costs is referred to as the "economic order quantity," also known as the "economic buying quantity." It's one of the earliest forms of conventional production scheduling. The EOQ formula looks like this. EOQ is calculated as [((2 x demand x ordering cost) / carrying cost] squared Demand.

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