EOQ = sqrt*(2*D*S/H)
D = Annual Demand
S = Setup cost or Ordering cost
H = Holding cost or inventory carrying cost
I work for Colgate Palmolive. We use Calcium carbonate whose annual demand is 4000 Tons
The Ordering cost is 100$ per order
The Holding cost per Ton per year is 5$
The EOQ = sqrt(2*4000*100/5) = 400 Tons
Thus, every time we use to order 400 Tons of material and store the same.
The number of orders placed per year = Annual demand/EOQ = 4000/400 = 10 orders
So, it helped to drastically improved inventory for all Raw and Packaging material along with Engineering spares
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."