Total Cost for Purchase Model with No Shortage Calculator

✖Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.ⓘ Demand per Year [D]			+10% -10%
✖The Purchase Price is the price an investor pays for an investment, and the price becomes the investor's cost basis for calculating gain or loss when selling the investment.ⓘ Purchase Price [P]			+10% -10%
✖Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory.ⓘ Carrying Cost [C_c]			+10% -10%
✖Order Cost is the expenses incurred to create and process an order to a supplier.ⓘ Order Cost [C₀]			+10% -10%

✖Total Cost for Purchase Model No Shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage.ⓘ Total Cost for Purchase Model with No Shortage [TC_p]

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Total Cost for Purchase Model with No Shortage Solution

STEP 0: Pre-Calculation Summary

Formula Used

Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost)
TC_p = D*P+sqrt(2*D*C_c*C₀)
This formula uses 1 Functions, 5 Variables

Functions Used

sqrt - A square root function is a function that takes a non-negative number as an input and returns the square root of the given input number., sqrt(Number)

Variables Used

Total Cost for Purchase Model No Shortage - Total Cost for Purchase Model No Shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage.
Demand per Year - Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.
Purchase Price - The Purchase Price is the price an investor pays for an investment, and the price becomes the investor's cost basis for calculating gain or loss when selling the investment.
Carrying Cost - Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory.
Order Cost - Order Cost is the expenses incurred to create and process an order to a supplier.

STEP 1: Convert Input(s) to Base Unit

Demand per Year: 10000 --> No Conversion Required
Purchase Price: 20 --> No Conversion Required
Carrying Cost: 4 --> No Conversion Required
Order Cost: 200 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TC_p = D*P+sqrt(2*D*C_c*C₀) --> 10000*20+sqrt(2*10000*4*200)

Evaluating ... ...

TC_p = 204000

STEP 3: Convert Result to Output's Unit

204000 --> No Conversion Required

FINAL ANSWER

204000 <-- Total Cost for Purchase Model No Shortage

(Calculation completed in 00.004 seconds)

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< Manufacturing and Purchase Model Calculators

EOQ Manufacturing Model with Shortage

LaTeX Go EOQ Manufacturing Model with Shortage = sqrt(2*Demand per Year*Order Cost*(Shortage Cost+Carrying Cost)/(Carrying Cost*Shortage Cost*(1-Demand per Year/Production Rate)))

Maximum Stock Out Manufacturing Model

LaTeX Go Maximum Stock out Manufacturing Model = sqrt(2*Demand per Year*Order Cost*Shortage Cost*(1-Demand per Year/Production Rate)/(Carrying Cost*(Carrying Cost+Shortage Cost)))

EOQ Manufacturing Model with No Shortage

LaTeX Go EOQ Manufacturing Model No Shortage = sqrt((2*Order Cost*Demand per Year)/(Carrying Cost*(1-Demand per Year/Production Rate)))

EOQ Purchase Model with No Shortage

LaTeX Go EOQ Purchase Model No Shortage = sqrt(2*Demand per Year*Order Cost/Carrying Cost)

Total Cost for Purchase Model with No Shortage Formula

LaTeX Go

Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost)
TC_p = D*P+sqrt(2*D*C_c*C₀)

What is total cost for a purchase model with no shortage?

Total cost for a purchase model with no shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage. It is the cost incurred in the total functioning of the supply chain right from placing the order to executing it. It is the sum of the unit cost, inventory cost, and the order cost.

How to Calculate Total Cost for Purchase Model with No Shortage?

Total Cost for Purchase Model with No Shortage calculator uses Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost) to calculate the Total Cost for Purchase Model No Shortage, Total Cost for Purchase Model with No Shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage. Total Cost for Purchase Model No Shortage is denoted by TC_p symbol.

How to calculate Total Cost for Purchase Model with No Shortage using this online calculator? To use this online calculator for Total Cost for Purchase Model with No Shortage, enter Demand per Year (D), Purchase Price (P), Carrying Cost (C_c) & Order Cost (C₀) and hit the calculate button. Here is how the Total Cost for Purchase Model with No Shortage calculation can be explained with given input values -> 204000 = 10000*20+sqrt(2*10000*4*200).

FAQ

What is Total Cost for Purchase Model with No Shortage?

Total Cost for Purchase Model with No Shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage and is represented as TC_p = D*P+sqrt(2*D*C_c*C₀) or Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost). Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year, The Purchase Price is the price an investor pays for an investment, and the price becomes the investor's cost basis for calculating gain or loss when selling the investment, Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory & Order Cost is the expenses incurred to create and process an order to a supplier.

How to calculate Total Cost for Purchase Model with No Shortage?

Total Cost for Purchase Model with No Shortage is the actual cost incurred in the production of a given level of output for a purchase model with instantaneous replenishment and without shortage is calculated using Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost). To calculate Total Cost for Purchase Model with No Shortage, you need Demand per Year (D), Purchase Price (P), Carrying Cost (C_c) & Order Cost (C₀). With our tool, you need to enter the respective value for Demand per Year, Purchase Price, Carrying Cost & Order Cost and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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