My company totals 25,000 units per year with an ordering cost of $50.00 per order. My annual holding cost is 40% of the value of the inventory. My total cost per unit is $20.00. I want to determine the order size to minimize the total annual cost using the EOQ. Would my formula be:
E= square root (2 x 25,000 x 50 / 12) = 456 x 40%
Thank you
E= square root (2 x 25,000 x 50 / 12) = 456 x 40%
Thank you