{"id":9294,"date":"2019-10-17T02:43:27","date_gmt":"2019-10-17T02:43:27","guid":{"rendered":"https:\/\/hstutorial.com\/?p=9294"},"modified":"2020-02-22T22:49:47","modified_gmt":"2020-02-22T22:49:47","slug":"eoq-definition","status":"publish","type":"post","link":"https:\/\/hstutorial.com\/nl\/eoq-definition\/","title":{"rendered":"EOQ - Definitie &amp; Veronderstellingen van Economische Order Quantity"},"content":{"rendered":"<div class=\"page\" title=\"Page 18\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<h2>What is Economics Order Quantity (EOQ)?<\/h2>\n<p>This is the re-order quantity where the total relevant cost of inventory is minimized. EOQ is also known as optimal re-order quantity. It also the ordering quantity at which the control cost ordering is minimized. See also, <a href=\"https:\/\/hstutorial.com\/nl\/inventory-control\/\">Inventory Control Summary.<\/a><\/p>\n<blockquote><p>Subscribe to our YouTube channel so as not to miss a tutorial video.<\/p>\n<p><script src=\"https:\/\/apis.google.com\/js\/platform.js\"><\/script><\/p>\n<div class=\"g-ytsubscribe\" data-channelid=\"UCsHPKTWR8pDErG0onuksKSA\" data-layout=\"full\" data-count=\"default\"><span style=\"font-size: 16px;\">\u00a0<\/span><span style=\"background-color: #ffffff; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif; font-size: 16px;\">\u00a0<\/span><\/div>\n<\/blockquote>\n<h3>Assumptions of EOQ.<\/h3>\n<p>(1) There is no lead time<br \/>\n(2) There is no quantity discount<br \/>\n(3) The rate of demand is known<br \/>\n(4) There will be no opening and closing stock<br \/>\n(5) The holding and ordering cost are controllable<\/p>\n<h3>Derivation of the EOQ Model.<\/h3>\n<\/div>\n<\/div>\n<div class=\"layoutArea\">\n<div class=\"column\">\n<h4><em>Let:<\/em><\/h4>\n<ul>\n<li>D &#8211; Annual Demand<\/li>\n<li>Co &#8211; Ordering Cost Per Order<\/li>\n<li>H &#8211; Holding Cost Per Unit<\/li>\n<li>Q &#8211; Re-order Quantity<\/li>\n<li>P &#8211; Purchase Cost Per Unit<\/li>\n<\/ul>\n<h3>Formula Derivation:<\/h3>\n<\/div>\n<\/div>\n<div class=\"layoutArea\">\n<div class=\"column\">\n<ul>\n<li>Annual demand = D <em>divided by<\/em> Q<\/li>\n<li>Total ordering cost = D <em>divided by<\/em> Q x Co<\/li>\n<li>Average cost = Q <em>divided by<\/em> 2<\/li>\n<li>Total holding cost = Q <em>divided by<\/em> 2 x H<\/li>\n<li>Total inventory cost (controllable) = D x Co <em>divided by<\/em> Q + Q x H <em>divided by<\/em> 2<\/li>\n<li>Total inventory cost (uncontrollable) = PD + D x Co <em>divided by<\/em> Q + Q x H <em>divided by<\/em> 2<\/li>\n<\/ul>\n<h3>Monetary control of material<\/h3>\n<p>This is the control of the monetary values of materials in order to minimize cost or capital outlay.<\/p>\n<p>It involves the control of the operating cost of the materials in stock.<\/p>\n<div class=\"page\" title=\"Page 19\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<h3>Types of costs<\/h3>\n<ol>\n<li>Purchase cost.<\/li>\n<li>Carrying \/ Holding \/ Storage cost.<\/li>\n<li>Ordering cost.<\/li>\n<li>Stock-out cost.<\/li>\n<\/ol>\n<h4>Definition of the Terms Above<\/h4>\n<ol>\n<li><strong>Purchase Cost:<\/strong> This is the cost of obtaining suppliers as raw material.<\/li>\n<li><strong>Carrying \/ Holding \/ Storage cost:<\/strong> Cost of keeping the raw materials in your store.<\/li>\n<li><strong>Ordering Cost:<\/strong> Cost of placing an order or orders for raw materials, which also includes delivery cost.<\/li>\n<li><strong>Stock-out Cost:<\/strong> This cost is incurred when you don\u2019t have any goods to sell.<\/li>\n<\/ol>\n<h2>Video Guide on EOQ<\/h2>\n<p>This video will help you understand how to derive the formulas for EOQ (Economic Order Quantity). <span class=\"waslinkname\">Click here to watch on YouTube<\/span> or watch the same video below.<\/p>\n<div class=\"wonderplugin-video\" style=\"width:600px;height:400px;position:relative;display:block;background-color:#000;overflow:hidden;max-width:100%;margin:0 auto;\" data-aspectratio=\"1.5\"><iframe class=\"wpve-iframe\" width=\"100%\" height=\"100%\" src=\"https:\/\/www.youtube.com\/embed\/8x1JchKcn6c\" frameborder=\"0\" allowfullscreen><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Wat is de economische bestelhoeveelheid (EOQ)? Dit is de nabestelhoeveelheid waarbij de totale relevante voorraadkosten geminimaliseerd worden. EOQ staat ook bekend als optimale herbestelhoeveelheid. Het ...<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/hstutorial.com\/nl\/eoq-definition\/\"> <span class=\"screen-reader-text\">EOQ - Definitie &amp; Veronderstellingen van Economische Order Quantity<\/span> Lees verder &raquo;<\/a><\/p>","protected":false},"author":2,"featured_media":9296,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[61],"tags":[217,324,323],"class_list":["post-9294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-accounting","tag-cost-accounting","tag-economic-order-quantity","tag-eoq"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EOQ - Definition &amp; Assumptions of Economic Order Quantity - HS Tutorial<\/title>\n<meta name=\"description\" content=\"EOQ is the re-order quantity where the total relevant cost of inventory is minimized. 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