C723 QUANTITATIVE ANALYSIS FORMULAS. Designed to boost confidence and grades!

C723 QUANTITATIVE ANALYSIS FORMULAS.
Designed to boost confidence and grades!
Time duration estimates - answer: 𝑇𝑒 = (𝑜+4𝑚+𝑝)/6


Annual holding cost - answer: (average inventory level) * (holding cost per unit per
year)


Annual ordering cost - answer: (annual demand) / (order quantity) * (cost per order)


Total inventory cost - answer: cost of items + (annual holding cost) + (annual ordering
cost)


Economic order quantity - answer: √((2 x 𝐷emand x order cost)/holding cost)


Economic production quantity - answer: √(2 x 𝐷emand x 𝑆etup cost x 𝑅ate of
production)/(𝐻olding cost x (𝑅ate −𝐷emand))


Holding cost - answer: item cost * interest




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