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EOQ and Safety Stock Analysis by Aniket Anil is a document available to read on EtoBox.
1. For a government purchasing paper, the economic order quantity is 600 boxes. The total inventory and ordering costs are $7200. If the order quantity increases by 50% to 900 boxes, costs rise by 8.3%. If the order quantity decreases by 50% to 300 boxes, costs rise by 25%. 2. If demand or setup costs change, it impacts the economic order quantity. Lower interest rates mean it is cheaper to hold more inventory, so lot sizes increase. 3. Given historical demand data, the safety stock needed to achieve
- Author
- Aniket Anil
- Language
- EN