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How do you derive the expression for EOQ? First, you draw the above Then you state that at minimum total inventory cost, carrying cost = ordering cost i.e., D/Q* X Co = Q*/2 X Ch Therefore, Q*= √(2DCo/Ch).
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How do you derive the expression for EOQ? First, you draw the above Then you state that at minimum total inventory cost, carrying cost = ordering cost i.e., D/Q* X Co = Q*/2 X Ch Therefore, Q*= √(2DCo/Ch)