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Math Help - Inventory Model

  1. #1
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    Inventory Model

    assuming no shortages permitted and an order lead time of zero, calculate the economic order quantity and economic order time for the firm:

    if:
    x(demand) = 1000 units/month
    h (holding cost) = 1% of the value of stock/month
    k(fixed cost)=$180/delivery
    c (variable cost) = $4/unit

    the economic order quantity is (2kx/h) square rooted.

    any help appreciated!
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  2. #2
    GAMMA Mathematics
    colby2152's Avatar
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    Quote Originally Posted by DooBeeDoo View Post
    assuming no shortages permitted and an order lead time of zero, calculate the economic order quantity and economic order time for the firm:

    if:
    x(demand) = 1000 units/month
    h (holding cost) = 1% of the value of stock/month
    k(fixed cost)=$180/delivery
    c (variable cost) = $4/unit

    the economic order quantity is (2kx/h) square rooted.

    any help appreciated!
    EOQ=\sqrt{\frac{2kx}{h}}\Rightarrow \sqrt{\frac{2*180*1000}{0.1}} = ???

    I will leave you and your calculate to complete the problem.
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