1
Q
EOQ =
A
Square root 2 x CO x D / CH
2
Q
EOQ= number of orders
A
D/EOQ
3
Q
EOQ = ordering cost per year=
A
D/EOQ x CO
4
Q
EOQ holding cost per year
A
EOQ / 2 x CH
5
Q
EOQ Total cost =
A
Holding cost + ordering cost
6
Q
OAR - labour hour =
A
Total budget overheads / labour hour
7
Q
OAR machine hours =
A
Total budgeted overheads / machine hours
8
Q
OAR % direct wages =
A
Total overheads /direct wages x 100
9
Q
OAR %prime cost =
A
total overheads /prime cost x 10
10
Q
Oar overhead absorbed =
A
Actual activity x OAR
11
Q
Oar overhead as % =
A
Budgeted overhead / activity x 100
12
Q
Oar overhead absorbed =
A
% x activity level
13
Q
Reorder level
A
Maximum usage x maximum lead time
14
Q
Minimum stock level
A
Reorder level - average usage x average lead
MATS
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