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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 following diagram describes the architecture development process prescribed by the The Open Group Architecture Framework (TOGAF). The bi-directional arrows link
What do you mean by variable costs? Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are as given below: direct
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