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Economics Chapter 2 Neighborhood Pharmacy EOQ the Neighborhood Pharmacy
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February 27, 2023
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Case 2
EOQ Estim
ation for
the Neighborhood P
harmacy
Quantity
(Q)
Total Cost
(TC)
Price (P
)
Use
Requirement
(X)
Order Cost
θ
Carrying
Cost (C)
0
4
5,000
$50
$0.50
100
$22,525
4 5,000
50
0.50
200
21,300
4 5,000
50
0.50
300
20,908
4 5,000
50
0.50
400
20,725
4 5,000
50
0.50
500
20,625
4 5,000
50
0.50
600
20,567
4 5,000
50
0.50
$22,000
$22,500
$23,000
Neighborhood Pharmacy EOQ