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Explain about the Economic Order Quantity and Total Cost with diagram.
Economic Order Quantity and Total Cost: The total of Inventory procurement cost and also inventory carrying cost is total cost.
In the above given figure, the procurement cost and inventory carrying cost have been plotted along regarding quantity in lot. There total cost is computed by addition the procurement cost and carrying cost. Total cost is less at the point A and therefore B shows the Economic Order Quantity (EOQ).
The Integrated Management Project is a demanding piece of work requiring initiative, energy and application. It is our desire to support you and help you in this process as much as
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application of differential costing in project
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