Thread: 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!

Originally Posted by DooBeeDoo

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!

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