Inventory Control (part 3) - Economic Batch Quantity - ACCA Management Accounting (MA)

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Inventory Control (part 3) - Economic Batch Quantity - ACCA Management Accounting (MA)

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Honestly. I clicked the video thinking it was another one of the bad videos and instantly realized how good this professor actually really is, backed by his age and experience.

muhammadhassanbhatti
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Thank you for the video. Could someone please explain me why exactly the expression of (1-D/R) is used to "adjust for the delay"? Where does it come from?
Like, I understand that the higher the demand is, the higher is EBQ, and the higher the production rate is, the lower is EBQ, but why is it reflected in the formula in this exact way?

yuliafedyuk
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Am gonna call u SENSE which is grand master to me

Sense John

GBScorpion
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Hello Mr. John, the calculation for EBQ should be Square root 2x200x50000/3x0.9 = 2449, however in your lecture you did 2x200x50000/3/0.9=2722. Kindly clarify. Thank you

gellipineda
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