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Unit 7 - EOQ - Coggle Diagram
Unit 7 - EOQ
Inventory Cost
Ordering Costs
Carrying Cost
Capital Cost
Store Space Cost
Inventory Service Cost
Inventory Risk Cost
Inventory Control Techniques
ABC
HML
VED
SED
FSN
EOQ
'Q' Models
Graph
Inventory Levels
Maximum Level
Re-order Level
Minimum Level
Economic Order Quantity (EOQ)
Buffer Stock
Merits
Economical Quantity
Focus on Needed Items
Positive Control
Demerits
Irregular Ordering Intervals
High Lead Time Challenges
Supplier Minimums
Irregular Recorder Points
'P' Models
Merits
Low Ordering and Inventory Costs
Supplier Discounts
Irregular or Seasonal Use
Demerits
Periodic Review Requirement
Inflexible Order Quantities
Peak Workloads
Graph
Replenishment level
Unots of Stock
days
Assumptions of EOQ
Demand is known and deterministic
The lead time is known and constant
The receipt of inventory is instantaneous
Quantity discounts are not possible
Only costs pertinent to inventory models are considered
EOQ = Square Root of 2AP/S