Total Optimum Cost for Purchase Model in Industrial Engineering Formulas

The Total Optimum Cost for Purchase Model is the sum of the inventory and the order cost. And is denoted by TOC_p.

Formulas to find Total Optimum Cost for Purchase Model in Industrial Engineering

fxTotal Optimum Cost for Purchase ModelGo

fx Demand per Year Go

fx Carrying Cost Go

fx Order Cost Go

fx Shortage Cost Go

What is the Total Optimum Cost for Purchase Model?

The Total Optimum Cost for Purchase Model is the sum of the inventory and the order cost.

Can the Total Optimum Cost for Purchase Model be negative?

{YesorNo}, the Total Optimum Cost for Purchase Model, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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