31 Before explaining how to find the order quantity minimizing total annual costs, we need the following definitions:  TC i (q) = total annual cost if each order is q units at a price p i  EOQ i = quantity that minimizes total annual cost if, for any order quantity, the purchasing cost of the item is p i  EOQ i is admissible if b i-1 ≤EOQ i <b i.
{"Image DocumentName": "These definitions are illustrated on the next slide.", "Image ImageDescription": "Before explaining how to find the order quantity minimizing total annual costs, we need the following definitions: TCi(q) = total annual cost if each order is q units at a price pi. EOQi = quantity that minimizes total annual cost if, for any order quantity, the purchasing cost of the item is pi. EOQi is admissible if bi-1\u2264EOQi<bi. TC(q) = actual annual cost of q items are ordered each time an order is placed. These definitions are illustrated on the next slide. Our goal is to find a value of q minimizing TC(q).", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}