Finance Questions » economic order quantity formula http://www.finance-questions.com Sun, 14 Aug 2011 17:56:55 +0000 en hourly 1 http://wordpress.org/?v=3.1.2 http://www.finance-questions.com http://www.finance-questions.com/wp-content/plugins/maxblogpress-favicon/icons/favicon-48.ico Finance Questions Economic Order Quantity Formula Continued http://www.finance-questions.com/2009/09/economic-order-quantity-formula-continued/ http://www.finance-questions.com/2009/09/economic-order-quantity-formula-continued/#comments Mon, 14 Sep 2009 00:46:38 +0000 admin http://www.finance-questions.com/2010/07/economic-order-quantity-formula-continued/
Deriving Economic Order Quantity Formula The Economic Order Quantity calculation below derives the formula for Economic Order Quantity. Simple calculus is used. First, we rewrite T in the form that is easily differentiable. At minimum value, dt/dQ is zero therefore: Remember Q is Economic Order Quantity and we have arrived at the Economic Order Quantity [...]

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