FORMULAS:
H = Annual holding cost per unit
D = Annual Demand
S = Ordering cost per order
Q0 = EOQ (Economic Order Quantity)
TC = Total annual cost
Q = Order quantity (units)
d=demand
LT= Lead time
z= service level
σd = standard deviation
Level of Service
Z
50%
0
60%
0.254
70%
0.525
80%
0.842
85%
1.037
90%
1.282
95%
1.645
96%
1.751
97%
1.880
98%
2.055
99%
2.325
99,9%
3.100
99,99%
3.620