AN EOQ EXAMPLE (1)

Determine optimal number of needles to order!

Annual demand = 1,000 units
Set up cost = $10 per order
Holding cost = $.50 per unit per year
AN EOQ EXAMPLE (2)
Determine the number of orders placed per year!
Annual demand = 1,000 units
Set up cost = $10 per order
Holding cost = $.50 per unit per year
Optimal number of needles to order = 200 units
AN EOQ EXAMPLE (3)
Determine the expected time between orders!
Annual demand = 1,000 units
Set up cost = $10 per order
Holding cost = $.50 per unit per year
Optimal number of needles to order = 200 units
Number of orders placed per year = 5 orders per year
AN EOQ EXAMPLE (4)
Determine the total annual cost!
Annual demand = 1,000 units
Set up cost = $10 per order
Holding cost = $.50 per unit per year
Optimal number of needles to order = 200 units
Number of orders placed per year = 5 orders per year
Expected time between orders = 50 days