Question

derivation of eoq formula​

Answer 1

Answer:

The total cost function and derivation of EOQ formula

Step-by-step explanation:

This is P × D. Ordering cost: This is the cost of placing orders: each order has a fixed cost K, and we need to order D/Q times per year. This is K × D/Q. Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is h × Q ...