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EOQ

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E cono mic
Econo
mi
The
uonbh FOa)
Orde
maki
o
amount
during
PYocuced
uanhi
cycle
knouwn
PToduced
Order
aS
procuhon
e
uan k y
or
Size
Cos ts
maOr
my
the
-
wher
the
Ehe
E OQa
CAnd
order ing
Cos&
caying
Cos
Size
orleng
inven bor
the
o
nenwy
main ain s
Co
Cos
inc
Oveler
wl
COmyin
inCrea 3es
decrease,
Ehe
wheras
r e a se
dec reasey
decrea se, h e reaS
wil
Cos
i'ncrea so
abalance the there Cost
m ínímíses bth
and tains
orde in
Minimum tul cos
/Totol cos
RS
wi)
Coing
Size
ordeing
the ordov
cost
Cost
Cosn
l e in
indust
when
the
mojor
ur
e
cos
poínt
and
when
oyeins
inenbor cosk a m
Invenom coming
CoscY
0rder cansins Co
CAY
occars at
FoQ omula
Tot
cost
(TcJ= cost o
Ordeving
puveha se
Tc
Tota
annua)
C
Cost
a
pe
Cost
Coyt
Anuual demcnd
D
CaYrgin
Cost
in
untyear
uní
Order quantiy.|nvenlom.
EOa Econo mic
Ovder u a n i
S
Sekp
H
Annua holdins co3 pe unit
i'nven bo.Annud Cojing Cos
cost
or
rdeins Costoder
H C , 4 holding
iS
cos
ol av3-
9ven
m
kms
percenaye.
PRr
Tolal
cent
order
no
o
2
Annual 4
Pureh oSe
annual
P.c
Amnu a
Demand
Cos
PRr
Annum.
Annual2
Annua
Ord eing
Camying
Co
Cost
Cost
Cos
Annua
Covnging
/Annual emand
Oreder Quan
Cos
uni
ordeno
costd
Orda
-Avg.\/n
CoMi
mvent cod
Economíc Ovde,.EOQ
2D-S
Quenih
t
1
t
H
DS
EOQ
invenhor
Cayimg
Cayng
's
Cost
ex
pesso din
erms
o
then
E OQt) Optimal
aDS
no.
Deman d
d
EOQ
)
No.
Opkmal imne
fnlerva b
order
Minimum
invenoy
)Saleb skoek
D
Eoa
workin
o
Op imel no o
das in a3e
ovelee
pey
v
SH
Macead
me
Nomol
Aead ime
Consumpion vete,
ar
The
demand
One
S15,Oo0 pPes|gv.
ceruin
unt
o
e
m
lem
eem
he
the
Cos
Co
Rs.o0 the holdin3 cot vEle121
Seup
Selup
o
ime
k
produce
doun
eaipment
Rs15oohv.
De t.
)
anny e
hne
O
bachis
5 h . The co
cos
plusobou cos
EOQ, i) Totad
s
inenry cost
Cos
Given
D
15ooo pe
ar
CRa0ope = 18. Se 5h|b.tk,
Se 15oe ]hv.
Solkon
E Oa
EOQ
D
.3
H
Setup cost|botth:(S) ( ) =
50o
'EoQ-5006 (7s06)
Dsooo ) (a 5o
(1EOCaoo)
eoQ 4IS66
Rs
4unit
T o la
inven y
TIC
Co s
Annua
/Annueh
0denns
Ca
Cos
(
(9
5ooo
)
L 13
. o)
annuA
0o
Annu
al
cos
Annu
ovdei
Cagin
CoS
Cos
)
TA
0-18
69484-13)+ (45
Totd
TACE
Co
s
(
ns
3
47am0 17
A hnual
+Puchax
Prodn. c o j
The
annuc
The
The unit
Cos
Rsimared
One
emand hc
is
PTCur
Rs. 6. and
S
os
emis
n
men
pe
inveno y
a n n unm.
3oo units.
CosE
cost
T\
o
R s.)50, de lemine
s
aiven
D
3oo
C
Rs 6.
umits.
S 3 5 7.
o s
S -Rs. 150
Soln
)FoQ
3Ds
EoQ
8oo
units
H
i)
No.
ot
NE
Odes
per
Time
(
330 4
D
FOQ
)
y-ar
Conse C h e
EOQQ
D
orcdevs
800 ) (12)
3
3
months
00
19 pimad cost
OC
Pureha Se
C D+
Cost
Minimal o bo) mven loy
D sic
(6) (39oo) +|. 32 00. 150.0 aS- 6
Rs20,400
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