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Question

how ordering cost should be calculated?

  • March 7, 2023
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h.s
Do Gooder
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  • Do Gooder
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Dear All,

we are going to apply planning method E or F in our company, and there are 2 key parameters that should be entered (ordering cost and holding cost). 

I have read many papers and website, but I have not found any suitable pattern yet to calculate the ordering cost.

I would like to know, how ordering cost should be calculated when we are going to place our purchase order for each material. I should set ordering cost for each material, there is who calculate this parameter or know how I can calculate it?

I am very confused about this problem; I would be appreciated to help me.

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