The EOQ (economic order quantity) of an item is the quantity of items in an orde

Question

The EOQ (economic order quantity) of an item is the quantity of items in an order that minimizes the inventory cost, that is, the combined ordering cost, purchasing cost, and holding cost. The inventory cost is given by the formula C(x) below, where K is the cost to place an order, p is the price of each item, x is the number of items in each order, and the holding cost per year is h. This formula is valid when D is the number of units expected to be sold in a year. The quantity x, given by the formula below, is called the economic ordering quantity (EOQ) that minimizes the inventory cost. The Camera Store sells 960 Yamaha A35 digital cameras per year. Each time an order for cameras is placed with the manufacturer, an ordering cost of $10 is incurred. The store pays $80 for each camera, and the cost for holding a camera (mainly due to the opportunity cost incurred in tying up capital inventory) is $12 per year. Assume that the cameras sell at a uniform rate and no shortages are allowed.

C(x)= (KD/x) + pD + (hx/2)

x=sqrt(2KD/h)

a) What is EOQ?______ items
b)How many orders will be placed ea year?
c) What is the interval between orders (days)

Explanation / Answer

C(x)= (KD/x)+pD+(hx/2) x=sqrt(2KD/h)

This equation is stand for what, please reply i will respond you soon.

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