Economic Order Quantity Interactive Model

The Economic Order Quantity Interactive Model allows users to interactively conduct EOQ analysis. The user can change the three parameters: H, D and S to see the impact on the total cost curve.

Instructions:

1. H: Carrying cost per unit
   
2. D: Demand in units per year
   
3. S:Ordering cost
   
4. TC: The total-cost curve is U-shaped. TC=H*Q/2+S*D/Q
   
5. HC: Carrying costs are linearly related to order size. HC=H*Q/2
   
6. OC: Ordering costs are inversely and nonlinearly related to order size. OC=S*D/Q
   
Press Reset to start over.