EOQ is useful when demand for a product is constant over the a particular range of tim and when each new order is delivered in full at the point when your inventory reaches zero.
There is a fixed cost for each order placed, regardless of the number of units ordered. There is also a cost for each unit held in storage, commonly known as holding cost, sometimes expressed as a percentage of the purchase cost of the item.
Use EOQ to determine the optimal number of units to order such that you can minimize the total cost associated with the purchase, delivery and storage of the product.
- 13.0 MB
- Update Date:
- AutoLean, Inc.
Safe to Download
AppPure.com and the download link of this app are 100% safe. The download link of this app will be redirected to the official App Store site, thus the app is original and has not been modified in any way.Got it