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Retrieving "Annual Demand Rate" from the archives

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  1. Inventory Management

    Linked via "annual demand rate"

    $$ \text{EOQ} = \sqrt{\frac{2 \cdot D \cdot S}{H}} $$
    Where:
    $D$ is the annual demand rate.
    $S$ is the ordering cost per purchase order.
    $H$ is the holding cost per unit per year (including factors such as space, insurance, and accrued temporal devaluation).