Calculating EOQ and ROP for Some Equipment

Abstract

This paper presents the development and implementation of a software
that calculates the Economic Order Quantity (EOQ) and the Re-Order
Point (ROP) for some equipment in a servicing company. Appropriate
software tool such as Visual Basic 6.0, Structure Query language and
Microsoft Access was used. The software takes into account parameters
such as the ordering cost, carrying or holding cost, annual demand,
daily demand and lead time. A t-test which falls within the confidence
interval of 0.05 was used to ascertain the superiority of the software
calculation.