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(Solved): A phone company has annual demand of 15,000. A component has annual holding cost of $6 per unit, and ...



A phone company has annual demand of 15,000. A component has annual holding cost of $6 per unit, and ordering cost of $75. Calculate EOQ, Total Cost, number of orders per year and the order cycle time. H =S6 per unit S= $75 D = 15000 units Q_{o} = sqrt((2DS)/H) TC = (QH)/2 + (DS)/Q


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To calculate the Economic Order Quantity (EOQ), we can use the formula:
  
where:...
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