A B C D E 1 Basic Economic Order Quantity (EOQ) Model Basic 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A
B
C
D
E
1 Basic Economic Order Quantity (EOQ) Model
Basic
2 <Back
3 Annual Demand
D =
76,833
4 Ordering cost per order
S = $
97.00
5 Annual Holding cost per unit
H=$
0.1830
6 Working days per year
D/Y =
248
7 Economic Order Quantity
8
9 Actual Order Quantity
EOQ=
9,025
18,050
10 Number of orders per year
D/Q=
4.26
11 Length of order cycle (days)
Q/D*D/Y =
58.26
12 Average Inventory
Q/2 =
9,025
13 Annual holding cost
(Q/2)*H=$
1,652
14 Annual ordering cost
15 Total Annual Cost
16
17 Annual Product Costs
18
19 Total Cost of Ownership (TCO)
20
(D/Q) * S = $
413
TC = $
2,064
(D* PUC) =
TCO =
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