whats A in EOQ formula

anand (ca) (107 Points)

06 May 2010  

in EOQ formala  i.e. sqaure root of {( 2 x Annual requirement x Ordering cost  ) / Carrying cost}

what is A - whether it is annual requirements or normal usage or demand or consumed quantity 

if normal usage qty and demand qty are given den which one to b taken in d formula? pls clarify 

whether it is consuption or requirement or demand.....