Economic Order Quantity (Unit 6)

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi,<BR><BR>In Unit 6, we covered Stock Control, I got very confused with the Re-Order Quantity section.<BR>EOQ, Economic Order Quantity Equation....I don't understand what this is or how to remember, could someone explain.<BR><BR>Thanks, Louise<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Economic Order Quantity (Unit 6)

    The eoq equation is easily remembered as 2cod over chips as it is 2 x Cost of Ordering x annual Demand divided by Cost of Holding (this is then square rooted).<BR><BR>Wish I knew this when I had to remember it!<BR><BR>Annette

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