parameters
units/year
$/order
$/unit/year
$/unit
EOQ
—
√(2DS / H)
orders / year
—
D / EOQ
reorder interval
—
days
annual ordering cost
—
(D/EOQ) × S
annual holding cost
—
(EOQ/2) × H
annual purchase cost
—
D × C
total annual cost
—
ordering + holding + purchase
cost curve
sensitivity analysis
| order quantity | ordering cost | holding cost | total cost | vs EOQ |
|---|