2CooD
Economic order quantity =
C 2CoD
Economic order quantityHH =
CH
Miller – Orr Model
Miller – Orr Model
Miller – Orr Model 1
Return point = Lower limit + ( x sp pread)
3 1
Return point = Lower limit + ( x sp
pread)
3
1
1
3
3
x transaction cost x variance of cash flows 33 1
Spread = 3 4
4
3
x transaction cost x variance of cash flows
interest rate
3
Spread = 3 4
interest rate
8
9