Economy, asked by ShahAshish4652, 1 year ago

How to calculate economic order quantity formula with a calculator

Answers

Answered by abhinavprajit
0

Well there are online software which provides you to calculate the economy order....

Economic order quantity = square root of [(2 x demand x ordering costs) ÷ carrying costs]

EXAMPLE:

   Economic order quantity = square root of [(2 x 1,200 x ($50)) ÷ $3]

   Economic order quantity = square root of [$120,000 ÷ $3]

   Economic order quantity = square root of 40,000

   Economic order quantity = 200

You just determined that the ideal order level is 200 units. At that level, you minimize ordering and carrying costs

if satisfied do mark brainliest and all the best to you FRIEND

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