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

Assignment Help:

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

 


Related Discussions:- Application of statistics-economic order quantities (eoq)

Matrix of r, Let R be the relation on S = {1, 2, 3, 4, 5} defined by R =...

Let R be the relation on S = {1, 2, 3, 4, 5} defined by R = {(1,3); (1, 1); (3, 1); (1, 2); (3, 3); (4, 4)}. (b) Write down the matrix of R. (c) Draw the digraph of R.

Compute the probability, From past experience a machine is termed to be set...

From past experience a machine is termed to be set up correctly on 90 percent of occasions.  If the machine is set up correctly then 95 percent of good parts are expected however i

Illustration of rank correlation coefficient, Illustration of Rank Correlat...

Illustration of Rank Correlation Coefficient In a beauty competition two assessors were asked to rank the 10 contestants by using the professional assessment skills. The resul

Theorem, #question if two angles of a triangle are unequal in measure then ...

#question if two angles of a triangle are unequal in measure then the side opposite to greater angle is longer than the side opposite to the smaller angle

Simplify Radicals, Can I have simplify radicals for Alebgera 2

Can I have simplify radicals for Alebgera 2

Terminology of polynomial, Terminology of polynomial Next we need to ge...

Terminology of polynomial Next we need to get some terminology out of the way. Monomial polynomial A monomial is a polynomial which consists of exactly one term.

Determine the poisson probability distribution, A manufacturer assures his ...

A manufacturer assures his customers that the probability of having defective item is as 0.005. A sample of 1000 items was inspected. Determine the probabilities of having the give

Vectors, If r,R denote position vectors of points on the straight lines in ...

If r,R denote position vectors of points on the straight lines in the direction of a and b respectively, and if n is a unit vector perpendicular to both these directions, show that

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd