When we try to calculate EOQ the result as always 1. Ordering cost is set to $1 and expected annual usage has been manually added. What other steps are required?
Thank you.
Umesh Mittal
15th January 2009, 07:13
Hi,
Thera are three steps that is required for calculating EOQ.
(1) Ordering Cost
(2) Inventory Carrying Cost
(3) Expected Annual Usage