Scribd
Upload
2 views5 pages

Optimizing Inventory with EOQ Model

Uploaded by

dhanuja1020
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2 views5 pages

Optimizing Inventory with EOQ Model

Uploaded by

dhanuja1020
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Project review

[Link]
II [Link] Maths
240613
Inventory Model in mathematics
 An inventory model is a mathematical frame work.
 Helping business find the perfect balance of stock.
 How much to order and when, meet customer demand
without stocking, thus minimizing costs and
maximizing profit.
Core Purpose

 Cost optimization

 Demand fulfillment

 Operational efficiently
Key decisions addressed
 Order quantity (Q): How many units to order at a time
 Example:

◦ Economic Order Quantity –EOQ


Formula:
EOQ=
Where,
◦ D= Annual demand
◦ S= Ordering cost per quantity
◦ H= Holding cost per unit per year
THANK YOU

You might also like