Question

What are the formulae of total cost carrying cost ordering cost optimal no of orders?

Answer 1

We can calculate the order quantity as follows: Multiply total units by the fixed ordering costs (3,500 × $15) and get 52,500; multiply that number by 2 and get 105,000. Divide that number by the holding cost ($3) and get 35,000. Take the square root of that and get 187. That number is then Q.

Answer 2

Answer:

formula of total cost carrying cost ordering cost optical and optimal number of orders