S
Sharpin Zou
Dear all, Understand that EOQ is widely used for managing the purchasing orders for Raw Material/parts in purchase department. But we are Requested from our boss recently to set up a calculation model for managing the customer orders - EOQ for customer order. I have very limited experience in using the EOQ. Could you please to help clarify below question? Thank you very much!
1. Is the model EOQ=Square Root of (2*D*Co/Ch) still suitable for the this purpose - EOQ for customer order?
2. If yes, what should the D, Co and Ch stands for, especially how to set up the definition for Co (order cost)?
By the way, our company is a chemical company with batch process. We have hundreds of SKU and have both MTO (make to order) and MTS (make to stock) models..
1. Is the model EOQ=Square Root of (2*D*Co/Ch) still suitable for the this purpose - EOQ for customer order?
2. If yes, what should the D, Co and Ch stands for, especially how to set up the definition for Co (order cost)?
By the way, our company is a chemical company with batch process. We have hundreds of SKU and have both MTO (make to order) and MTS (make to stock) models..