ACCA F2 Inventory Control (part a) The EOQ Formula
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very nice…
This video is not playing 馃檨
aren’t open tuition’s notes enough to read? do we really have to study text book?
Our Course Notes contain enough to pass the exam, provided that you practice lots of questions (by getting a Revision/Exam Kit from one of the publishers).
Very clear and easily understood..thanks Sir!
Superb. As usual.
thanks for explaining in the example however is there a formula to work out inventory cost like EOQ
@fourteenapril2012, You can invent your own formula if you want, but in the exam you will be tested that you understand – not that you have just learned a formula for the cost. So do not learn a formula – make sure that you understand how the costs have been calculated. Once you understand then it is very easy.
Very nice lecture
very very good explaining, thank u soooo much SIR.
Great lecture. I struggled understanding this straight from the text book. Thanks!
good way of explaining a complex subject .
is it helpful for self study because i only taking lectures from open tuition.
understandable lectures! thanks Open Tuition
My question is that if i will take all lectures, i can go for examination. Because i only taking lectures from open tuition.
@success4u, You should also make sure that you study from one of the study texts available. It is also very useful to have a Revision/Exam Kit, because practicing questions is the best way of all of learning for the exam.
Thanks for such a nice and understandable lecture
Very good explanation
for the lding cost calcuation, where its divided by 2 to get the average. i understand the graph drawn to illustrate how and why the average was calculated. but my question is why not take the whole qantity? instead of the average, which will give only an approximation.
@zeeprincess, we assume that holding costs are charged on a day by day basis – a large cost when the warehouse is full, and no cost when it is empty.
So the total cost over the year will be the average inventory level multiplied by the holding cost per unit.
I do not see why the average is an approximation!
I think the issue of average inventory is confusing. If the holding cost is per annum, why is i wrong to get 40,000 divide by 2 to get the average inventory.
It is not wrong, which is what I was explaining to zeeprincess – we do apply the holding cost to the average inventory (which is the order quantity divided by 2)!
That is great thank you Sir
I can’t see the video
wow! this was excellent illustrated… god bless you open tuition.. 馃檪
The purchase cost will stay the same regardless of the quantity being ordered. However in later chapters when discounts is introduced the purchase price/cost will become relevant in the decision making.
thank you 馃檪 great teacher
very useful….. thanks