Modern techniques economic order quantity, Financial Accounting

Assignment Help:

The economic demand quantity can also be found out with the assist of a graph. In this technique ordering cost, carrying cost and total inventory costs as per various lot sizes are plotted on the graph. The point at that the line of inventory carrying cost and the ordering cost intersect each other is the economic order quantity. At that point the total inventory cost is also minimizing. The function of EOQ is demonstrated below in the figure1.

1933_Modern Techniques Economic Order Quantity.png

Figure: Function of E.O.Q

 As in figure 1, costs as caring, ordering and total cost are plotted on the vertical axis (y) and order size is demonstrated on the horizontal axis (x). By figure 1 one can simply see that there is an inverse relation between ordering cost and inventory carrying cost that is inventory carrying cost raises and ordering cost decreases as the order size rises. In the first illustration the total cost line reduces as the order size increases, but this starts rising when reduce in ordering cost is more than offset through the raise in carrying cost.


Related Discussions:- Modern techniques economic order quantity

During the course you will be required to develop a , During the course you...

During the course you will be required to develop a Course Project having to do with writing notes for a fictitious annual report.

Annuity, An annuity is explained as stream of uniform duration cash flows. ...

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an a

What is completion report, Q. What is Completion Report? The object of a ...

Q. What is Completion Report? The object of a completion report is to compare the cost of work actually constructed with those provided for in the last sanctioned estimate. A com

Greek Debt Exchange, Greek Debt Exchange On the evening of February 20, 201...

Greek Debt Exchange On the evening of February 20, 2012 private institutional investors, representatives of the IMF, ECB, and European governments agreed to a major "intervention"

Revenue recognition, Revenue recognition is a joint project of financial ac...

Revenue recognition is a joint project of financial accounting standard board and international accounting standard board.1.identify the roles and objectives of FASB and IASB?.2. W

Prepare the appropriate entry, LCI Cable Company grants 1.4 million perform...

LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shar

Prepare a revised balance sheet, #questionBroadway Scripts is a service-typ...

#questionBroadway Scripts is a service-type enterprise in the entertainment field, and its manager, Joe Numbers, has only a limited knowledge of accounting. Joe prepared the follo

Whats the company''s return on investments?, Sales= 4,500,000 Min required ...

Sales= 4,500,000 Min required return= 15% Avg Operating assets= 1,800,00 Residual Income= 90,000 !) Whats the company's return on investments? Please show work so I can see how

The time value of money , Calculate the present value and determine the npv...

Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

Value of accounting information, Value of accounting information When a...

Value of accounting information When assessing value of accounting information we are confronted with similar problems. Provision of accounting information can be very expensiv

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