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Ordering Cost Carrying/Holding Cost Purchasing Cost Total Purchasing Cost Economic Order Quantity (EOQ) Reorder Point Average Inventory Break-Even Calculation Customer Service Level Mean Absolute Deviation Mean Error Total Annual Cost
Order Cost = (Annual Demand * Order Cost)/Order Quantity in Units
Carrying Cost = (Price per unit * Carrying cost percentage * Order Quantity in Units)/2
Purchasing Cost = Annual Demand * Price per unit
Total cost = Ordering Cost + Carrying Cost + Purchasing Cost
Reorder point = Estimated Demand * Lead Time
Average Inventory = EOQ/2 + safety stock
BREAK EVEN CALCULATION: There are three primary factors in the break even point: the selling price of the product, the variable cost and the fixed cost. Q= (Fixed Cost)/((Price per unit -Variable costs per unit)) at break even at Q
Break even point = (Fixed Cost)/(1-(Variable costs/Sales)
Break even occurs when: (Profit per unit * quantity) - (variable cost per unity * quantity) - fixed cost = 0 Break Even Analysis for Restaurant
Calculating ROI for Business Intelligence Project
EXPONENTIAL SMOOTHING
TREND ENHANCEMENT
SEASONAL ENHANCEMENT
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