Kukuh Faedlur Rahman

14522125

How to prove that inventory calculation is mostly use triangle

equation?
Basic Inventory Analysis
It is easy to prove that
triangle equation is applied in
inventory analysis.

Mathematic notation:
Q = Order Quantity
H = Holding Cost
So, Inventory carrying cost =

HxQ
2

where H represent

base of triangle and Q represent the height.

H

Backorder Model
Note:
Inventory carrying cost =

HxQ
2

t1 = V/R, In triangle t1 = base and v =

height, area of triangle =

base x height
2

So inventory carrying cost at t1 =

Vx t 1
H
2

H V2

2R