Number of orders Example

Number of orders Example

Number of orders per year may be calculated by dividing annual demand with Quantity per order. This formula can be expressed as under

Number of order =    Annual Demand    

                              Quantity per Order

Example

Quantity required for the year = 80,000

Quantity to be ordered= 8000

Calculate number of order

Solution

Number of order =    Annual Demand    

                              Quantity per Order

= 80,000/8000

= 10 order