Inventory planning and control Question:
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Tell me how would you determine the numbers to use in the EOQ formula?
Answer:
To determine which numbers to use you must look for the following items. The number of items per order is the quantity(Q). The number of items that can be sold is D.
D may be the forecast demand for that particular good. The cost of placing the order is used for S. The final number to find is the carrying cost(C) which is the cost of the item to be held in inventory.
D may be the forecast demand for that particular good. The cost of placing the order is used for S. The final number to find is the carrying cost(C) which is the cost of the item to be held in inventory.
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