If, D = annual demand for a material (units per year)
Q = quantity of material ordered at each order point (units per order)
C = cost of carrying one unit in inventory for one year (rupees per unit per year)
S = average cost of completing an order for a material (rupees per order).
TSC = total annual stocking costs for a material (rupees per year)
Then, the economic order quantity (EOQ) is
