Calculate the economic order quantity eoq and ordering, Ask an Expert

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Calculate the economic order quantity (EOQ) and ordering frequency (OF) for the water filters ($12.79 each), if the cost of placing an order is $5 and carrying costs are 10%. Annual usage is estimated at 1500 units.

Please note: I understand the EOQ formula to be: SQRT (2*Quantity*Cost per order / Carry Cost). BUT I need to find ORDERING FREQ, and the equation I was given was OF=(N*EOQ)/U with U being Quantity.. Please show work in excel.

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Financial Management, Finance

Category:- Financial Management
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