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ORDER SIZE- Fig 42 avatory Costul Cos Trade-offs Now. If we examine the eq 2 that is the total cost equation, we attain the relationship between the fixed cost and variable cost. This seationship s shown in the above fig. 4.2. Nute that the total cost curve has the lowese value just above the tersection of the ordering cost curve and curyag cost curve, and also at the intersectional cost is equal to the carrying cost . From the eq 4. ww we will get EOQ-Q"-20 146 The cycle prad 24.7 Annual Demand D CD N-Total umber of anders per year, which is ich is the recipecat af cyck period (1) That is ND-CD +48 191 MRA AM k12 The al cost-TC- CSOK teal Time Contattate layouts) * (Demunt Kate jet you Minimum Level- Maximum Level Render Level Let us see tew example of discese Example 4.1 Aftur se R. 211,000 worth of an item during the year Manufacturer estimated the andering cost as Rs Super onder and holding costs 12.3af average inventary value the optimal ederse, number of orders per year, time period pesonder and tal cost