Application of statistics-economic order quantities (eoq), Mathematics

economic order quantities (EOQ)

Statistics may be utilized in ordering or making economic order quantities as EOQ. It is significant for a business manager to understand that it is an economic cost if one orders a large quantity of items which have to be stored for more long before they are sold. This is as the large stock holds a lot of capital, which could otherwise be utilized in buying other items for sale.

It is significant also to realize that the longer items are stored in the stores extra will be the storage costs

On the other hand if one orders a few items for sale he will acquire relatively low storage expenses however may not be capable to satisfy all the clients. These may lose their customers whether the goods are out of stock. Hence it is advisable to work out the EOQ which will be enough for the clients in a certain period before delivery.

The EOQ will ensure that also minimal costs are acquired in terms of storage

 

Posted Date: 2/15/2013 7:17:39 AM | Location : United States







Related Discussions:- Application of statistics-economic order quantities (eoq), Assignment Help, Ask Question on Application of statistics-economic order quantities (eoq), Get Answer, Expert's Help, Application of statistics-economic order quantities (eoq) Discussions

Write discussion on Application of statistics-economic order quantities (eoq)
Your posts are moderated
Related Questions
#question.mario has 3 nickelsin his pocket.wha fraction ofadolla do 3 nickels represent

want to make an assignment on shares and dividend for class 10

if a&b are aconsra

Find and classify all the equilibrium solutions to the subsequent differential equation. y' = y 2 - y - 6 Solution First, get the equilibrium solutions. It is generally

y 2 = t 2 - 3 is the actual implicit solution to y'= t/y, y(2) = -1. At such point I will ask that you trust me that it is actually a solution to the differential equation. You w

Q. Assume a birthday is equally likely to occur in each of the 365 days. In a group of 30 people, what is the probability that no two have birthdays on the same day? Solution:


Q. Finding the Area of a Triangle? There are three commonly used methods to find the area of a triangle. The method you use to find the area depends on the information you kno

Graph        f ( x ) = - x 2 + 2x + 3 . Solution It is a parabola in the general form.                              f ( x ) = ax 2 + bx + c In this form, the x-coor

more questions on wavy curve method