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Economic Order Quality Eoq

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sikander kushwaha

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Presentation On Economic order quantity ‘ EOQ’
Team members ,[object Object],[object Object],[object Object],[object Object],[object Object]
Inventory ,[object Object],[object Object]
Inventory cost ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Inventory management & control ,[object Object],[object Object]
Inventory control Techniques ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is EOQ ? ,[object Object],[object Object]
Definition of EOQ ,[object Object],[object Object]
EOQ Models ,[object Object],[object Object]
Assumption of the EOQ Models ,[object Object],[object Object],[object Object],[object Object],[object Object]
‘ Q’ Model of EOQ ,[object Object]
Graphic presentation of ‘Q’ Model E O Q RE-ORDER LEVEL BUFFER STOCK MAXIMUM LEVEL MINIMUM LEVEL E G I N V E N T O R Y TIME PERIOD K A B C D
Mathematical method of EOQ ,[object Object],[object Object],[object Object],[object Object]
Mathematical formula of ‘Q’ Model ,[object Object],[object Object],[object Object],[object Object],[object Object],EOQ = Square Root of 2AP/S
Example: Q. Calculate the economic order quantity if annual demand for the product is 5,000 unit. The ordering cost is Rs 30 per order and holding cost is Rs 6/- per unit per annual. Sol:- Given R=5000 unit Cp= Rs. 30 Ch=Rs. 6 Now, _____ EOQ = J ( 2RCp/ CH) _____ = J(2*5000*30/6) ______ = J 5000 = 224 or 22.5 units.
Merits of ‘Q’ system ,[object Object],[object Object],[object Object]
Demerits of ‘Q’ system ,[object Object],[object Object],[object Object],[object Object]
‘P’ model of EOQ ,[object Object],[object Object]
Graphical Presentation of ‘P’ Model Q U A L I T Y UNITS OF STOCK Replenishment level R1 15 days Y1 Y2 Y3 R3 R1 G S3 R2 S2 S1 S2 R2 R3 S3
Merits of P model ,[object Object],[object Object],[object Object]
Demerits of ‘P’ model ,[object Object],[object Object],[object Object]
THANK YOU

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Economic Order Quality Eoq

  • 1. Presentation On Economic order quantity ‘ EOQ’
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  • 12. Graphic presentation of ‘Q’ Model E O Q RE-ORDER LEVEL BUFFER STOCK MAXIMUM LEVEL MINIMUM LEVEL E G I N V E N T O R Y TIME PERIOD K A B C D
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  • 15. Example: Q. Calculate the economic order quantity if annual demand for the product is 5,000 unit. The ordering cost is Rs 30 per order and holding cost is Rs 6/- per unit per annual. Sol:- Given R=5000 unit Cp= Rs. 30 Ch=Rs. 6 Now, _____ EOQ = J ( 2RCp/ CH) _____ = J(2*5000*30/6) ______ = J 5000 = 224 or 22.5 units.
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  • 19. Graphical Presentation of ‘P’ Model Q U A L I T Y UNITS OF STOCK Replenishment level R1 15 days Y1 Y2 Y3 R3 R1 G S3 R2 S2 S1 S2 R2 R3 S3
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