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
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
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
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
