Let Q- quantity ordered and t- the length of inventory cycle. Using the following Q and T relationships. Develop the appropriate EOQ equation using the assumptions of the standard EOQ model. 3.) Inventory Time Ot .1t .2t .4 10 .7Q .5Q .45Q .25Q 8t 1t

Let Q- quantity ordered and t- the length of inventory cycle. Using the following Q and T relationships. Develop the appropriate EOQ equation using the assumptions of the standard EOQ model. 3.) Inventory Time Ot .1t .2t .4 10 .7Q .5Q .45Q .25Q 8t 1t

 

Solution

EOQ Equation using the assumptions of the standard EOQ Model:

https://d2vlcm61l7u1fs.cloudfront.net/media%2Fbbd%2Fbbdf4f85-d5b3-4240-876c-979f8e3d9df0%2FphprklA7b.png

D = Annual Demand
S = Set up cost
H = Holding cost
q = quantity order
t = Length of the inventory cycle
The assumptions of EOQ model are

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