Abstract

As we know that the trading or manufacture company should decide the optimum quantity of the inventory must be available. The optimum Quantity called Econo-mic Order Quantity is the amount of inventory, which reach the Minimum Total Cost. When the company calculated the optimum quantity, there is some parame-ter must be known, for example : Setup Cost (Order Cost), Holding Cost, and Demand. Because all of this parameter can influence each other . In this article the author will be derived the formula of Economy Order Quantity based on the concept of Calculus Mathematic called Derivative of The Function. In order the extreem point from Total Cost reach minimum vaue, there is the First Derivative from the Total Cost has zero value. The author also design the program to calculate all the parameter above by using the Quick Basic Programming Language in Com-puter Simulation. By using the Computer Programming, we can calculate the para-meter above quickly and otomatically.

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