Explain economic order quantity and total cost, Operation Management

Assignment Help:

Explain Economic Order Quantity and Total Cost.

Economic Order Quantity and Total Cost: The total sum of Inventory procurement cost and inventory carrying cost is total cost.

630_Economic Order Quantity and Total Cost.png

In the given figure, the procurement cost and inventory carrying cost have been plotted regarding quantity in lot. Total cost is computed by adding the procurement cost and carrying cost. Total cost is minimization at the point A and therefore B shows the Economic Order Quantity (EOQ).


Related Discussions:- Explain economic order quantity and total cost

Explain factors that influence an organizational structure, Discuss at leas...

Discuss at least three factors that influence how an mnc selects an organizational structure

Explain what role does tca play in the decision, 1. The chapter mentions th...

1. The chapter mentions the theory of transaction cost analysis (TCA). What role does TCA play in the decision to use a company sales force rather than independent manufacturers' a

Explain employees explicit rights to free speech, Giving employees explicit...

Giving employees explicit rights to free speech, just cause dismissal, and information are three possibilities for transforming U.S. labour law.

International Business Management, Describe the sentence "The world economy...

Describe the sentence "The world economy is globalizing at an accelerating pace"

Explain probabilites for grades in management science, The following probab...

The following probabilites for grades in management science have been determined based on the past records: Grade Probability A .10

Explain statistical cost estimation technique, The technique that estimates...

The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the-

Explain appraising and compensating subordinates, Do you believe that manag...

Do you believe that managers should be given more autonomy to make personnel decisions such as hiring, appraising, and compensating subordinates, or do you believe that managers sh

Explain how contracting fits into the acquisition program, Describe how you...

Describe how you think contracting fits into the acquisition program. Feel free to use some of your own experiences and examples

Explain what is the long-term probability, A copy machine is always in one ...

A copy machine is always in one of two states, either working or broken. If it is working, there is a 70% chance that it will be working tomorrow. If it is broken, there is a 50% c

Assignment, transformation process in an organization

transformation process in an organization

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd