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  1. ECONOMIC ORDER QUANTITY (EOQ) SHIVAM RAWAT 2402210035 BCOM PROGRAMME SEMISTER II

  2. INTRODUCTION TO EOQ Definition: EOQ is a formula used to determine the optimal order quantity that minimizes total inventory costs. Importance: Helps businesses reduce holding costs and ordering costs.

  3. KEY COMPONENTS OF EOQ Holding Costs: Costs associated with storing inventory. Ordering Costs: Costs incurred every time an order is placed. Demand Rate: The rate at which inventory is used or sold.

  4. EOQ FORMULA Formula: Where: D: Annual demand (units) - the total quantity of product sold in a year. S: Ordering cost per order - the fixed cost incurred each time an order is placed. H: Holding cost per unit per year - the cost to hold one unit of inventory for a year. Visuals: Consider including a diagram that visually represents the components of the formula.

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