Derivation of Economic Order Quantity(EOQ) | Must Know | Accounts | Production | Finance
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Derivation of Economic Order Quantity(EOQ) | Must Know | Accounts | Production | Finance
This video illustrates the derivation of the formula used to find the Economic Order Quantity(EOQ). The concept of EOQ is explained along with the underlying assumptions. The concept of total inventory cost is used to derive the EOQ formula. The total inventory cost includes the ordering cost and carrying cost. The carrying cost is also ...
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