Engineering Management2D
Operations and Production Management - Theory & Concepts - Eng Mgmt Eoq
Production systems, inventory control (EOQ, JIT), supply chain management, and maintenance.
Open the complete lessonEconomic Order Quantity (EOQ) Simulator
1000
Units per year
$10
Cost per order placed
$2
Cost to hold 1 unit for 1 year
Notice how increasing ordering costs (S) drives up the EOQ (order less frequently), while increasing holding costs (H) drives the EOQ down (order smaller amounts more often).
Optimal Order (EOQ)100units/order
Total Orders10per year (every 36.5 days)
Total Cost$200Holding: $100 | Order: $100
Inventory Level Over Time (1 Year)
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