How to Calculate Total Optimum Cost for Purchase Model?
Total Optimum Cost for Purchase Model calculator uses Total Optimum Cost for Purchase Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*Shortage Cost/(Shortage Cost+Carrying Cost)) to calculate the Total Optimum Cost for Purchase Model, The total optimum cost for purchase model is the sum of the inventory and the order cost. It is the actual cost incurred in the production of a given level of output. Total Optimum Cost for Purchase Model is denoted by TOCp symbol.
How to calculate Total Optimum Cost for Purchase Model using this online calculator? To use this online calculator for Total Optimum Cost for Purchase Model, enter Demand per Year (D), Carrying Cost (Cc), Order Cost (C0) & Shortage Cost (Cs) and hit the calculate button. Here is how the Total Optimum Cost for Purchase Model calculation can be explained with given input values -> 3713.907 = sqrt(2*10000*4*200*25/(25+4)).