Impact on batch size of company when EPQ formula is used instead of EOQ formula is to be determined. Concept Introduction : Economic order quantity is the model in which a company decides the quantum of items to be ordered so that inventory cost and transportation cost is minimized. Economic production quantity is the model in which a company decides the quantum of items to be produced so that machine set up cost, holding cost is minimized.

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Chapter 10, Problem 10P

Summary Introduction

Interpretation: Impact on batch size of company when EPQ formula is used instead of EOQ formula is to be determined.

Concept Introduction: Economic order quantity is the model in which a company decides the quantum of items to be ordered so that inventory cost and transportation cost is minimized.

Economic production quantity is the model in which a company decides the quantum of items to be produced so that machine set up cost, holding cost is minimized.

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