|EOQ Model|Economic Order Quantity|EOQ Examples|Inventory Control Model|EOQ Numericals|Inventory Management|

On the basis of the theory developed here some of the examples of the basic inventory models are given below for easy understanding of the concept as well as to enable one solve the day to day Inventory problems too as far as determining the Economic Order Quantities , Time for ordering etc,.are concerned

The Classical Model

Demand rate: x
Ordering cost: C₁
Holding cost: C₂

Optimal Ordering Is: Q*
Optimal Cycle Is: T*
Number of Orders Is: n*
Total Cost Is: TC

Shortages Permitted Model

Demand rate: x
Ordering cost: C₁
Holding cost: C₂
Shortage cost: C₃
Backorder cost: C₄

Optimal Ordering Is: Q*
Optimal Shortage Is: S*
Total Cost Is: TC
Shortage Period Is: T₂
Period per Cycle Is: T

Production and Consumption Model

Production rate: K
Demand rate: x
Holding cost: C₂
Set-up cost: C₁

Optimal Run Size Is: Q*
Production Cycle Is: T ₁*
Optimal Cycle Is: T*
Cost per Cycle Is: TC

Production and Consumption with Shortages Model

Production rate: K
Demand rate: x
Setup cost: C₁
Holding cost: C₂
Backorder cost: C₄

Optimal Production Is: q*
Optimal Inventory Is: Q*
Optimal Shortage Is: P*
Total Cost Is: TC
Period per Cycle Is: T

EOQ with Shortages and Lead Time

I: Base Economic Order Quantity
Total Demand
Ordering Cost
Holding Cost/unit/year
Unit Price

EOQ
Average Periodic Ordering Intervals
Total Number of Orders
Total Cost

II: EOQ with Shortages and Lead Time
Estimated Lead Time in Days
Shortage Cost/unit/year

EOQ
Level for Reorder Point
Maximum Inventory Level
Total Cost
Longest Delay Time in Days

Home	Inventory Systems	Inventory Terminology	Codification	Apply for Jobs
Inventory Classification	Inventory Valuation	EOQ Models	MM Home	Online Job Links
Value Analysis	ABC Analysis	MRP System	Automatic Procurement System	XYZ Analysis

Must read these......

Basics of an Inventory
Basics Of Production Inventory Management
What is ABC Analysis of inventory ?
How to Carry out an ABC analysis ?
What is the Role of inventory management ?
Key Performance Indicators of inventory
Calculating Safety Stock
Optimization of Inventory
Process (steps) in inventory management
What's Supply Chain Inventory Management ?
What is XYZ Analysis of inventory ?
Learn AX control of inventory

Sponsored Links

Are you a Professional? Get all the resources below , at no cost

DC Velocity serves the Supply Chain field focusing solely and specifically on large Distribution Center operations

Waste Management World is the leading free international publication for the global waste management industry

A quarterly magazine for executives and site selectors planning to relocate a facility or expand operations

Renewable Energy Focus reports on various major topical developments in renewable energy from around the world...

Get more Business, Engineering, Technology, Trade, Industry Resources, at no cost

Did you check the following links ? If not, it is time to check them now :

Home	Stores Management	Courses in MM	MM Videos	Apply for Jobs
Purchasing	MM Softwares	Inventory Management	MM Articles	E-commerce

[Sitemap] [About us] [Disclaimer] [Copyright] [Privacy Policy] [Link with us] [Contact us]