EOQ and Square roots

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I'm struggling and stressing now. I have great difficulty in remembering the equations for EOQ and maximum and minimum stock levels, any tips for that? Also any tips for working out the EOQ without a scientific calculater as I haven't got one that has the square root function on it?

I'm hating this unit at this rate I'm gonna have to defer there's so much I'm having to go over again and again

Michele

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EOQ and Square roots

    EOQ is not part of the ECR standards

    I do not know what is on the paper, but EOQ will not be

    These are the relevant parts of the standards

    Element 6.1 Record and analyse information relating to direct costs and revenues
    D Check cost information for stocks against
    usage and stock control practices

    And knowledge and understanding

    5 Methods of stock control and valuation including First In First Out, Last In First Out and Weighted
    Average Cost (Element 6.1)

    19 Relationship between the materials costing system and the stock control system (Element 6.1)


    sandy.hood@chichester.ac.uk
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EOQ and Square roots

    I am not entirely sure that I agree with the fact that EOQ is not examined.

    EOQ has been something we have been taught at college, is also in our text. Also, I have just done a devolved assessment for ECR and it WAS in the paper.

    I would suggest to learn it, as it is an easy way of picking up marks if you can remember the equation. Plus, in the December 2004 exam you are examined on the reorder level, hence suggesting that we may get a question regards to stock level etc.

    As for the doing the calculation without a calculator this would be very difficult to do. I would suggest buying a cheap calcualtor that has a square root just so you dont get caught out.

    I would be grateful to hear anyone else's opinions on this, so that i am not learning stuff that may be irrelevant.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EOQ and Square roots

    My understanding, having met the ECR examiner in Leeds last May, is that the theory of EOQ can be questioned, but there will not be a question on calculating the formula, so calculators requiring a square root function are not required.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EOQ and Square roots

    Sandy Hood is perfectly correct. EOQ is NOT in the standards and therefore cannot be examined. However, that does not mean that the exam won't include the EOQ figure. If you think about it, you must know that to work out things like maximum stock.

    Graham Blott

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