[eva888]

hi

I’ve got Becker study text, it’s great.

Also cheap on Amazon.

[eva888]

Economic Order Quantity formula given in exam: EOQ=?2 x Co x D
__________
Ch

? meant to be a square rooted after calculation, only symbol I found in Word.
Co – cost to place an order
D – annual demand
Ch – annual holding cost per unit

2 times Co times Demand, then divide by the Ch, then find the square root.

2 x $20 x 1 000 000 units = 40 000 000

40 000 000 divide with $0.10 = 400 000 000

find square root of 400 000 000 = 20 000 units

I hope this helps.

[eva888]

Yes, they are the same, just different names to confuse us 🙂

[Author]

Posts