At 6:18, the annual inventory cost is given as "Q × P × i," but this is an error; it should be "Q/2 × P × i."
Later, at 8:44, the annual inventory cost is also given as "Q/2 × P × i."
The final conclusion that the economic order quantity is √2SR/Pi remains unchanged, but we apologize for the misleading content and have corrected it.
------------------------
This video explains Economic Order Quantity (EOQ).

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【Summary of this video】
・Economic Order Quantity (EOQ) is the optimal order quantity that minimizes the sum of ordering costs and inventory storage costs (total inventory cost), and is calculated using the formula Q = √(2DS/H)
・D = Annual demand, S = Order cost per order, H = Cost per unit With the annual storage cost per unit,

Increasing Q (EOQ) increases storage costs and decreases ordering costs; decreasing it has the opposite relationship.

The order quantity at which ordering costs and storage costs are equal is EOQ.

At this point, total inventory cost is minimized (the point where the two costs intersect).

The formula for EOQ can be derived by differentiating the cost function,

but it is sufficient to memorize the formula and substitute it into calculations.

Organize the meaning and calculation method of the EOQ formula (Q = √(2DS/H)) so that you can reliably calculate it even when changing the values.

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At 6:18, the annual inventory cost is given as "Q×P×i," but this is an error; it should be "Q/2×P×i."

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