Economic Order Quantity (EOQ) Models notations
D Annual Demand
C Cost per unit
I interest to hold the Inventory.
H Unit holding cost which is expressed as a percentage of costs (C*I)
O Ordering costs
Q* The Quantity to be ordered
T Length of the Time
N Number of annual order

Economic Order Quantity (EOQ) Models
Formulas
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Unit holding Cost (H)= C * I
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EOQ or Q opt
or Q*=SQRT ((2*D*O)/H)
No. Of orders (N)=D/EOQ
Annual Holding Cost (AHC)=H * EOQ/2
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Annual ordering Cost (AOC)= N*O
Combine Cost (CC)= AHC+ AOC
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Purchase Cost (PC)= D*C
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Total Cost= CC + PC
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Average inventory=Q*/2
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Duration between Orders or Time between orders (T)= No of
Working Days/N.

Economic Production Lot (EPL) Size
Models Notations
D Annual Demand
C Cost per unit
I interest to hold the Inventory.
H Unit holding Cost =(C*I).
O Ordering costs (Setup Cost)
P Production Rate
Q*, Q opt The Quantity to be produced
T Duration between productions run
N Number of production runs

Economic Production Lot (EPL) Size
Models Formulas
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Unit holding Cost (H)= C * I
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Lot size (Q*, Q opt)= SQRT ((2 * D * O)/(H*(1-D/P)))
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No Of Production runs (N)=D/Q*
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Annual Holding Cost (AHC)=(H*Q opt /2)*(1-D/P)
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Annual ordering (Setup)Cost (AOC)= N*O
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Combine Cost (CC)= AHC+ AOC
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Purchase Cost (PC)= D*C
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Total Cost= CC + PC
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Average inventory= (Q opt/2)*(1-D/P)
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Maximum inventory= Q opt *(1-D/P)
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Duration between production run (T)= No of Working Days/N.