Optimal Lot Size Calculator

✖Sales Volume refers to the total quantity or number of products or services sold by a company within a specific period.ⓘ Sales Volume [SV]			+10% -10%
✖Cost Per Run refers to the cost incurred each time a particular process, activity, or operation is executed or performed.ⓘ Cost Per Run [CR]			+10% -10%
✖Stock Expense Ratio refers to the percentage of a fund's assets that are used to cover the operating expenses of the fund.ⓘ Stock Expense Ratio [SER]			+10% -10%
✖Interest Expense Ratio is a financial metric that assesses a company's ability to cover its interest payments on outstanding debt.ⓘ Interest Expense Ratio [IER]			+10% -10%

✖Optimal Lot Size refers to the most efficient quantity of goods to produce at a time, balancing various factors such as production costs, customer demand, and economies of scale.ⓘ Optimal Lot Size [OLS]

⎘ Copy

👎

Formula

✖

Optimal Lot Size

Formula

`"OLS" = sqrt((2*"SV"*"CR")/("SER"+"IER"))`

Example

`"121.9875"=sqrt((2*"1250"*"150")/("10.10"+"15.10"))`

Calculator

LaTeX

Reset

👍

Download Banking Formulas PDF PDF Image

Optimal Lot Size Solution

STEP 0: Pre-Calculation Summary

Formula Used

Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio))
OLS = sqrt((2*SV*CR)/(SER+IER))
This formula uses 1 Functions, 5 Variables

Functions Used

sqrt - A square root function is a function that takes a non-negative number as an input and returns the square root of the given input number., sqrt(Number)

Variables Used

Optimal Lot Size - Optimal Lot Size refers to the most efficient quantity of goods to produce at a time, balancing various factors such as production costs, customer demand, and economies of scale.
Sales Volume - Sales Volume refers to the total quantity or number of products or services sold by a company within a specific period.
Cost Per Run - Cost Per Run refers to the cost incurred each time a particular process, activity, or operation is executed or performed.
Stock Expense Ratio - Stock Expense Ratio refers to the percentage of a fund's assets that are used to cover the operating expenses of the fund.
Interest Expense Ratio - Interest Expense Ratio is a financial metric that assesses a company's ability to cover its interest payments on outstanding debt.

STEP 1: Convert Input(s) to Base Unit

Sales Volume: 1250 --> No Conversion Required
Cost Per Run: 150 --> No Conversion Required
Stock Expense Ratio: 10.1 --> No Conversion Required
Interest Expense Ratio: 15.1 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

OLS = sqrt((2*SV*CR)/(SER+IER)) --> sqrt((2*1250*150)/(10.1+15.1))

Evaluating ... ...

OLS = 121.987509118567

STEP 3: Convert Result to Output's Unit

121.987509118567 --> No Conversion Required

FINAL ANSWER

121.987509118567 ≈ 121.9875 <-- Optimal Lot Size

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Banking » Optimal Lot Size

Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 100+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 16 Banking Calculators

Annual Interest Rate with Discount

Go Annual Interest Rate with Discount = (Cash Discount Amount*360)/((Invoice Amount-Cash Discount Amount)*(Term for Payment-Cash Discount Period))

Optimal Ordering Frequency

Go Optimal Ordering Frequency = sqrt((Material Requirements*Acquisition Price*Stock Keeping Expense Ratio)/(2*Cost Per Order))

Optimal Lot Size

Go Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio))

Calculative Interest

Go Calculative Interest = (Nominal Value*Price)/(Number of Shares+Payment Per Share)

Conversion Parity

Go Conversion Parity = (Nominal Value*Price)/(Number of Shares+Payment Per Share)

Liquidity

Go Liquidity = (Liquid Assets+Accounts Receivable+Stock)/Short Term Payables

Agio

Go Agio = (Purchase Price)+Option Warrant Price/Exchange Ratio-Share Price

Effective Cash Discount Rate

Go Effective Cash Discount Rate = (Cash Discount Rate*360)/(Term for Payment-Cash Discount Period)

Cash Value

Go Cash Value = Amount or Long Lease*(Annual Interest Rate)/(100+1)/(Annual Interest Rate/100)

Interest Earnings Per Quarter

Go Interest Earning Per Quarter = (Assets)/(Credit Balance)*(Key Interest Rate-2)/400

Outperformance Point

Go Outperformance Point = (Share Price)*(Expected Return Until Expiration+1)-Dividend

Commercial Interest

Go Commercial Interest = (Deposits*Annual Interest Rate*Period in Days)/(100*360)

Capitalised Earning Value of Property

Go Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation

Calculative Deduction

Go Calculative Deduction = (Replacement Cost-Declining Value)/Period

Annual Rent of Annuity

Go Annual Rent of Annuity = (Seed Capital-Finish Capital)/Period

Interest Charges Per Quarter

Go Interest Charges Per Quarter = (Credit)*(Key Interest Rate+1)/400

Optimal Lot Size Formula

Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio))
OLS = sqrt((2*SV*CR)/(SER+IER))

What do you mean by Optimal Lot Size ?

Optimal Lot Size refers to the most beneficial quantity of goods to produce at one time, balancing various factors such as production costs, inventory carrying costs, customer demand, and economies of scale. Determining the optimal lot size is crucial for businesses to operate efficiently and effectively. It involves finding the right balance between the costs of production or procurement and the costs associated with holding excess inventory. Producing or ordering in larger quantities may lead to economies of scale and lower unit costs, but it can also result in higher inventory carrying costs, risk of obsolescence, and tied-up capital. Several methods can be used to calculate the optimal lot size, including Economic Order Quantity, Production Batch Size, Just-in-Time inventory systems, and demand forecasting techniques. These methods consider factors such as setup costs, holding costs, demand variability, production capacity, and supplier constraints to determine the most cost-effective lot size.

How to Calculate Optimal Lot Size?

Optimal Lot Size calculator uses Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio)) to calculate the Optimal Lot Size, Optimal Lot Size represents the quantity that minimizes total costs while meeting customer demand and maintaining appropriate inventory levels. Optimal Lot Size is denoted by OLS symbol.

How to calculate Optimal Lot Size using this online calculator? To use this online calculator for Optimal Lot Size, enter Sales Volume (SV), Cost Per Run (CR), Stock Expense Ratio (SER) & Interest Expense Ratio (IER) and hit the calculate button. Here is how the Optimal Lot Size calculation can be explained with given input values -> 121.9875 = sqrt((2*1250*150)/(10.1+15.1)).

FAQ

What is Optimal Lot Size?

Optimal Lot Size represents the quantity that minimizes total costs while meeting customer demand and maintaining appropriate inventory levels and is represented as OLS = sqrt((2*SV*CR)/(SER+IER)) or Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio)). Sales Volume refers to the total quantity or number of products or services sold by a company within a specific period, Cost Per Run refers to the cost incurred each time a particular process, activity, or operation is executed or performed, Stock Expense Ratio refers to the percentage of a fund's assets that are used to cover the operating expenses of the fund & Interest Expense Ratio is a financial metric that assesses a company's ability to cover its interest payments on outstanding debt.

How to calculate Optimal Lot Size?

Optimal Lot Size represents the quantity that minimizes total costs while meeting customer demand and maintaining appropriate inventory levels is calculated using Optimal Lot Size = sqrt((2*Sales Volume*Cost Per Run)/(Stock Expense Ratio+Interest Expense Ratio)). To calculate Optimal Lot Size, you need Sales Volume (SV), Cost Per Run (CR), Stock Expense Ratio (SER) & Interest Expense Ratio (IER). With our tool, you need to enter the respective value for Sales Volume, Cost Per Run, Stock Expense Ratio & Interest Expense Ratio and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search