EOO Model EOO 3 Time periods
EOQ Model Time Periods 1 2 3 EOQ
Inventory policy costs Total Cost =Ordering Cost Carrying Cost (Number of orders X Cost per Order) (Average Inventory X Carrying ost per Unit)
Inventory Policy Costs Total Cost = Ordering Cost + Carrying Cost = (Number of Orders × Cost per Order) + (Average Inventory × Carrying Cost per Unit)
Inventory policy costs Total cost=O×-|+C× 2
Inventory Policy Costs + = 2 Q C Q S Total cost O
Total costs minimisation S O× C×
Total Costs Minimisation: = 2 Q C Q S O
Economic Order Quantity(EoQ 2×S×O EoQ
Economic Order Quantity (EOQ) C 2 S O EOQ =