urgent query

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407 Points Joined May 2009

 

Please clear my these Doubts in a very simple way or say like ur teaching to a layman...

1 WHAT IS LOGIC BEHIND THE FORMULA OF EOQ ie EOQ= ROOT 2AB/CS

2 HOW EOQ = ROQ

3 WHAT IS LOGIC BEHIND THIS FORMULA OF REORDER LEVEL IE  REORDER LEVEL= MAXIMUM USAGE PER DAY*MAXIMUM LEAD TIME

AND ONE MORE DOUBT IF ANYONE IS IPCC STUDENT PLEASE CHECK AND TELL ME 

 IN PAGE NO 2.31 OF COSTING MODULE IPCC 

IN EQUATION 3 ie 1/2*Q*I WHY THEY HAVE TAKEN 1/2

I request everyone in caclubindia kindly help me to clear this doubt


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On 20 January 2011 at 16:07 Report
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eoq=root (2*annual demand*ordering cost)/carrying cost

ordering cost=price per order,carrying cost =some percentage(gvn in question) of purchase price

eoq=optimum quantity of order at lowest possible cost.=economic order quantity

 

ROL IS THE LEVEL WHICH SHUD BE MAINTAINED ALWAYS.

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On 20 January 2011 at 16:17
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407 Points Joined May 2009

To Ashima

dear I hv asked the logic not the abbreviations of the formula...try and find out the logic behind this formula  and help me out, anyways thanks a lot to answer me....

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On 20 January 2011 at 18:54


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