How Is Economic Order Quantity Calculated?

1.	How Is Economic Order Quantity Calculated?
Answer» Q = v2AS/I where; Q stands for QUANTITY per order ; A stands for ANNUAL REQUIREMENTS of an item in terms of rupees S stands for COST of placement of an order in rupees I stand for inventory carrying cost per unit per year in rupees. Q = v2AS/I where; Q stands for quantity per order ; A stands for annual requirements of an item in terms of rupees S stands for cost of placement of an order in rupees I stand for inventory carrying cost per unit per year in rupees.

Answer»

Q = v2AS/I

where; Q stands for QUANTITY per order ;

A stands for ANNUAL REQUIREMENTS of an item in terms of rupees

S stands for COST of placement of an order in rupees

I stand for inventory carrying cost per unit per year in rupees.

Q = v2AS/I

where; Q stands for quantity per order ;

A stands for annual requirements of an item in terms of rupees

S stands for cost of placement of an order in rupees

I stand for inventory carrying cost per unit per year in rupees.

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