# Holding Cost and Ordering Cost Calculation by ygr89581

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```									                                                Sheet1

A             B          C         D     E         F        G           H
1   EOQ1.XLS
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4   Basic Economic Order Quantity Worksheet
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7   MODEL PARAMETERS:
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9   Constant Annual Demand           D           1200
10   Fixed Ordering Cost              K             \$5
11   Holding Cost                     H          \$1.20
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13   Decision Variable:               Q              100        For What-If Analysis
14                                                              and Solver
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=E10*E9/E13
17   Annual Ordering Costs:           To        \$60.00
18   Inventory Carrying Costs:        Th        \$60.00
19                                                             =E11*E13/2
20   TOTAL COST:                      Tc       \$120.00
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23   Direct Calculation of the EOQ:   EOQ            100
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=SQRT(2*E10*E9/E11)
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51   File: EOQ1.XLS

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Sheet1

A         B           C           D           E         F      G   H
52 Simple EOQ Model
53 Appendix - Chapter 5
54
55 Figure 5-A.1 Small Deterministic DSS Spreadsheet Inventory Model.

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