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
poijn jjjnjb jbjdbjbj

The Limit : In the earlier section we looked at some problems & in both problems we had a function (slope in the tangent problem case & average rate of change in the rate of chan

Find the area of shaded region, if the side of square is 28cm and radius of the sector is ½ the length of side of square.


E1) Do you agree that multiplication and division should be learnt intermeshed with each other, or not? Give reasons for your answer.  E2) How would you explain to children wh

Relations in a Set: Let consider R be a relation from A to B. If B = A, then R is known as a relation in A. Thus relation in a set A is a subset of A ΧA. Identity Relation:

if HCFof 657 and 963 is expressable in the form of 657x+963x-15findx

2(x+3x)+(x+3x)

Euler's Method Up to this point practically all differential equations which we've been presented along with could be solved. The problem along with this is which the exceptio

Finite Population Correction Factor Or Fpcf) If a specified population is relatively of small size and sample size is more than 5 percent of the population then the standard er