C723 Quantitative Analysis Formulas
Time Duration Estimates - correct answer ✔✔𝑇𝑒 = (𝑜+4𝑚+𝑝)/6
Annual Holding Cost - correct answer ✔✔(Average inventory level) * (holding cost per unit per year)
Annual Ordering Cost - correct answer ✔✔(Annual Demand) / (Order Quantity) * (Cost per Order)
Total Inventory Cost - correct answer ✔✔Cost of Items + (Annual Holding Cost) + (Annual Ordering Cost)
Economic Order Quantity - correct answer ✔✔√((2 x 𝐷emand x Order Cost)/Holding Cost)
Economic Production Quantity - correct answer ✔✔√(2 x 𝐷emand x 𝑆etup Cost x 𝑅ate of
production)/(𝐻olding cost x (𝑅ate −𝐷emand))
Holding Cost - correct answer ✔✔Item Cost * Interest
