Economic Order QuantityEOQ = √ ã 2*P*S/CP = Production in Units/monthS = Set-up and Ordering Cost per LotC = Inventory Carrying Costs $/unit/month In the late 1940's, Toyota started in the automotive ...

The classical EOQ formula assumes that all relevant costs and prices are constant. In this paper it is shown that with inflation the choice of the inventory carrying charge used in the EOQ formula ...