urgent query

 

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


Share This

Replies (2)

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.

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....

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details