ordering costs การใช้

• This figure graphs the holding cost and ordering cost per year equations.
• Classic EOQ model : trade-off between ordering cost ( blue ) and holding cost ( red ).
• The total cost will minimized when the ordering cost and the carrying cost equal to each other.
• We can notice from the equations above that the total ordering cost decreases as the production quantity increases.
• But Justice Susan Kenny ruled Thursday that a proper request had been made, dismissing the appeal and ordering costs against Pileggi.
• Therefore, in order to get the optimal production quantity we need to set holding cost per year equal to ordering cost per year and solve for quantity ( Q ), which is the EPQ formula mentioned below.
• Mobil, for instance, recently implemented an Internet ordering system for its roughly 300 lubricant distributors, saving the company $ 100, 000 a year in ordering costs, and cutting the error rate for such orders from 30 percent to virtually none, Ms . Terhune said.