Problem 12-21
Inventory EOQ Model Inventory EOQ Model
Input Data Input Data
Results Results
Economic order quantity, Q* 50.00 = 5,000 / 100 Economic order quantity, Q* 200.00 200 * 100 = 20,000 cu ft
Maximum inventory 50.00 Maximum inventory 200.00
Average inventory 25.00 Average inventory 100.00
Number of orders 100.00 Number of orders 25.00
Total holding cost $2,500.00 Total holding cost $10,000.00
Total ordering cost $40,000.00 Total ordering cost $10,000.00
Demand rate, D 5000 Demand rate, D 5000