To make it more clearly, again amount of quantity material that we are ordered from supplier is calculated from formula

above, and we use that formula because demand of our product is nearly constant, and it makes using of formula above to calculate Q is valid. And besides that quantity of material that produce from formula above, makes its inventory cost (sum of ordering cost and saving cost) minimum, for example lets we see inventory cost for LED lamp, in table below : Quantity of order against Inventory cost Quantity of Order 90000 100000 110000 120000 140000 150000 160000 170000 Inventory Cost (rounded value) 15 billion 14,3 billion 13 billion 12,7 billion 11 billion (minimum value) 12,7 billion 13,3 billion 14 billion

You can see that with order quantity around 140000 it makes inventory cost that we must pay is minimum, so thats why we ordered this lamp with amount 143427 pcs from table..... And this reason is applied from all of material ordered. Inventory cost from table above can be found using this formula:

Beside that you can see that change of inventory cost in area around of minimum value is linear (from 120000 until 150000). With this linear pattern we can easily predict inventoy cost that we must pay to deal with small change of quantity order. This prediction method is very sufficeint to our device, because demand of our device is nearly constant over years, and if there is some fluctuation in demand the rise will not be too significant (small change of quantity order).