ABCDEFGHIJKLMNOPQRSTUVW
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EOQ Model
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Demand 4000units/year
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Holding Cost5$/Year
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Ordering Cost100$/order
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Ch1Ch2Ch3Ch4Ch5Ch6Ch7
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Q5010020040050010002000
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Average Inventory25501002002505001000
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Total Holding Cost1252505001000125025005000
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Number of Orders80402010842
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Total Ordering Cost
8000400020001000800400200
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Total Cost8125425025002000205029005200
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Q = EOQ = √(2*cost of ordering * Demand/Holding Cost)
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