How to Calculate Maximum Inventory Purchase Model?
Maximum Inventory Purchase Model calculator uses Maximum Inventory Purchase Model = sqrt(2*Demand per Year*Order Cost/Carrying Cost*(Shortage Cost/(Shortage Cost+Carrying Cost))) to calculate the Maximum Inventory Purchase Model, The maximum inventory purchase model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation. Maximum Inventory Purchase Model is denoted by Qpurch symbol.
How to calculate Maximum Inventory Purchase Model using this online calculator? To use this online calculator for Maximum Inventory Purchase Model, enter Demand per Year (D), Order Cost (C0), Carrying Cost (Cc) & Shortage Cost (Cs) and hit the calculate button. Here is how the Maximum Inventory Purchase Model calculation can be explained with given input values -> 928.4767 = sqrt(2*10000*200/4*(25/(25+4))).