EOQ formula ? and tell me about that???
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Answer / antra
the answer given by shabari is 100% correct-
economic order quantity (EOQ) is the amount of inventory
to be ordered at one time for purposes of minimizing annual
inventory cost
ROOT OF 2*A*CP/CH
A = Demand for the year
Cp = Cost to place a single order
Ch = Cost to hold one unit inventory for a year
Also, guru prasad's answer is very well explained.
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / shailaja polmuri
The basic Economic Order Quantity (EOQ) formula is as
follows:
EOQ = Root of 2(annual usage in units) (Order cost)/annual
carrying cost per unit)
Annual usage: Expressed in units, this is generally the
easiest part of the equation. You simply input your
forecasted annual usage.
Order Cost: Also known as purchase cost or set up cost,
this is the sum of the fixed costs that are incurred each
time an item is ordered. These costs are not associated
with the quantity ordered but primarily with physical
activities required to process the order.
Carrying cost:
Also called Holding cost, carrying cost is the cost
associated with having inventory on hand.It is primarily
made up of the costs associated with the inventory
investment and storage cost. For the purpose of the EOQ
calculation, if the cost does not change based upon the
quantity of inventory on hand it should not be included in
carrying cost. In the EOQ formula, carrying cost is
represented as the annual cost per average on hand
inventory unit. Below are the primary components of
carrying cost.
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / hemalatha
EOQ=root of 2*A*b/s
A=ANNUL CONSUPTION
B=BUYING COST PER ORDER,
S=STORAGE AND CARRYING COST PER UNIT PER ANNUM.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / kishore g
EOQ is the quantity fixed at a point where total cost of
carrying and total cost of ordering cost will be the minimum.
Formula for EOQ=SQUARE ROOT OF 2*Annual Requirement*Cost per
order/Cost per unit of material*carrying cost.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / balu
EOQ=Root of 2(Annual usage in units)(Order cost)/(annual carrying cost per unit)
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / rushikesh shinde
EOQ= √2AO÷C
EOQ is the Economic order quantity
It is the minimum quantity that the company have to order to maintain their inventory with reduction of holding cost and the cost of ordering.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / mohammad imran
EOQ= rootover of 2sd/pi.
where as s stands for= set up cost
" " " d " " ' "= demand rate.
p = production cost.
I " " = interst rate.
this is an inventory eqution that implies the optimum
quantity that a company should maintain.
| Is This Answer Correct ? | 6 Yes | 8 No |
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