EOQ Economic Order Quantity.MP4
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Uploader Comments (judydaulton)
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i wish my operations management teacher was half as good as she is
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thanks for the effort.
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@judydaulton It makes sense. Thank you very much.
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thanks
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thanks...That sorts of things worth to be on the tube
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EOQ also means "Average inventory in units" right? Well now I know how to get the Average inventory in units, how do I go about that and find out the average inventory in dollars & yearly inventory carrying cost in dollars?
MAT0R0 4 months ago
@MAT0R0 EOQ is the number of units you should order at any one time. Average inventory in units at any point in time is EOQ/2 or for this problem 11/2 = 5.5. To get the yearly inventory carrying cost in dollars the formula is CU x CC x EOQ/2 or for this problem $55 x .15 x 11/2 which is 90.75/2 or $45.375.
judydaulton 4 months ago