Months Demands Received in the Table

Logistics Assignment
The demands received in the months are shown in the table:
Months 1 2 3 4 5 6 7 8 9 10 11 12
Demand 300 700 800 900 3300 200 600 900 200 300 1000 800
Solution:

 Ecomomic Order Quantity (EOQ) : = √ 2 × D × K
H
K= Annual demand=10,000 units
H=Annual holding cost per unit = $3
D=Fixed cost per year= $504
Economic Order quantity= √ 2 ×504 ×10000
3
= 1833 units.
1833 units should be ordered per month.
 Number of orders per year = D
EOQ
= 10000
1833 = 5.45= means 6 orders