Chapter 7 Flashcards
1
Q
formula for EOQ
A
Sqrt ( 2SO/C)
2
Q
what does S mean in the EOQ formula
A
s = sales in units
3
Q
What does the O stand for in the EOQ formula
A
ordering cost per unit
4
Q
What does the C stand for in the EOQ formula
A
carrying cost per unit per year
5
Q
Formula to find average inventory level
A
EOQ divided by 2
6
Q
formula to find average inventory with a safety stock
A
(EOQ/2) + safety stock
