EOQ Calculation in 13 min. - How to Calculate Economic Order Quantity Model or EOQ Model

[WerdPogingDurst]

could i ask. What if Bob already have a own warehouse to put all of the basket ball. what happened to the carrying cost??? what should i put as a carrying cost to the formula??? please answer me i need this to my sales and innventory system tanks a lot. :D

[MBAbullshitDotCom]

@WerdPogingDurst Even if he already owns the warehouse, you would still include the carrying cost, probably in the same amount as the problem. However, in this case, you would call it either "imputed carrying cost" or "opportunity cost". Why? If Bob didn't use his warehouse for the basketballs, he could rent-out the same space to someone else and earn money. But because he used this warehouse for his basketballs, he lost the opportunity to earn money by renting-out the said warehouse.

[MBAbullshitDotCom]

@ianiceman1 Thanks too dude!

[therealseanpoe]

subscribed brother..thnx so much.my supply chain teacher cant speak English and its killin me

[MBAbullshitDotCom]

@therealseanpoe Hope you don't actually die then :p

[kimbomang]

this is awesome!!

[rajb888]

@10:14 that's funny!

[MBAbullshitDotCom]

@rajb888 LOL

[MBAbullshitDotCom]

@AdamFeigin and @Phsyco Thanks dudes! Remember to share with friends click the like button. Cheers!

[PHSYCOPATH92]

thnx bro