Sir I have a doubt for a certain scenario I just thought of
In the case that there is minimum inventory given(buffer inventory) and EOQ is given and we need to calculate the Ordering costs
Note that the they also give the figures for annual demand
So if i as to find the Ordering costs I should divide only the demand by EOQ and not include minimum inventory right?
Please correct me if I am wrong sir
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E0Q
5y ago#1You are correct. The number of orders is the annual demand divided by the order quantity each time, and any buffer inventory is irrelevant for calculating the number of orders.
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