1.

EOQ=Under
root2AO÷c

2.ROL=MaxUsagexMaxTi
me

3.MaxLev
el=ROL+ROQ –(
MinUsagexMi
nTi
me)

4.Mi
nLev
el=ROL–(
AvgUsagexAv
gTi
me)

5.Av
erageLev
el=Maxl
evel
+Mi
nlev
el÷2

6.DangerLev
el=Av
erageUsagexTi
mef
oremer
gency
purchases

IfAverageTi
me,
Aver
ageUsagei
snotgi
veni
npr
obl
em,
iti
s
calcul
atedas

7.
AvgTi
me=Mi
nTi
me+MaxTi
me

8.
AvgUsage=Mi
nUsage+MaxUsage2

1.TotalCost=PurchaseCost+Tot alCarr
y i
ngCost+Tot al
OrderingCost
2.PurchaseCost=No.ofUni t
spurchasedxPur chasepriceper
unit
3.TotalCarryi
ngCost=Or derQtyxCar ryi
ngcostperuni tper
annum ÷2
4.TotalOrderi
ngCost=No.ofOr dersxOr deri
ngcostperor der
5.No.ofOr ders=AnnualDemand/Or derQty
(B)Ifinthequesti
on,noquant i
tydiscountsareprovidedthenthe
decisionabouttheorder
ing
quantitywil
lbetakenont heformulabelow-
6.TotalCost=TotalCarr
y ingCost+Tot alOrderi
ngCost