Ch 2 · Material Cost

🧮 Formula sheet

1. 1.EOQ = √[(2 × Annual Demand × Order Cost) / Carrying Cost per Unit]
2. 2.Reorder Level = Max Consumption × Max Lead Time
3. 3.Min Level = ROL − (Avg Cons × Avg LT)
4. 4.Max Level = ROL + ROQ − (Min Cons × Min LT)
5. 5.Avg Stock = (Min Level + Max Level) / 2