Computer Science - Management Information Systems - Discussion
Discussion Forum : Management Information Systems - Section 3 (Q.No. 5)
5.
When purchase cost is $20, maintenance cost is $0.50, and annual sale are 20 units, EOQ is
Discussion:
2 comments Page 1 of 1.
Libin.K said:
1 decade ago
How 40 come?
Please brief the answer.
Please brief the answer.
SOUVIK BERA said:
7 years ago
EOQ = √((2*purchase cost*Annual sales)/Maintenance cost)
PURCHASE COST*2= $ 40
ANNUAL SALES= 20 UNITS
SO NUMERATOR= 800
DENOMINATOR (MAINTENANCE COST)= 0.5,
EOQ= SQRT(800/0.5)= 40.
PURCHASE COST*2= $ 40
ANNUAL SALES= 20 UNITS
SO NUMERATOR= 800
DENOMINATOR (MAINTENANCE COST)= 0.5,
EOQ= SQRT(800/0.5)= 40.
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