Economic Order Quantity Analysis Example Home Page Back to NoteBook Summary Download Demo |
Sourcing Decision Support,
Inc. Economic Order Quantity
Analysis...Is this supplier able to provide you with a quantity discount
schedule that meets your EOQ?
Economic order quantity (EOQ) balances the cost acquisition and the cost of carrying material to minimize total costs. Use EOQ after any pricing anomalies found have been explained. The worksheet has been designed to permit you to perform sensitivity analyses (comparing the total cost based for different price/volume relationships). For additional information on this subject see Purchasing Principles and Applications, Stuart Heinritz, Paul V. Farrell, Larry Giunipero Michael Kolchin, Prentice Hall, Englewood Cliffs, NJ, 1991,pages 290-294. |