Batch Costing Formula

Economic batch Quantity:
1.       EOQ = 2AB / CS
A = Annual consumption in units               B = Buying cost per order
C = Cost per unit                                               S = Storage & carrying cost per annum.
2.       EOQ = 2UO / C
U = Usage in units per annum                    O = Ordering cost
C = Cost of inventory carrying cost per unit in year.
3.       EOQ = 2CO  / I
C = Consumption of the material in units per year             O = Ordering cost                                         I = Interest  & other carrying cost per unit / annum.
4.       EOQ = 2AB / S
A = Annual consumption in units               B = Buying cost per order
S = Storage & carrying cost per annum.

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