In the EOQ model, when Q = EOQ the sum of the annual holding cost and the annual ordering cost is…

➤ How do you compute EOQ and the summed cost value sqrt(2 K D h)?
Compute EOQ with Q* = sqrt(2 K D / h), where D is annual demand, K is fixed ordering cost, and h is annual holding cost per unit. Annual ordering = K D / Q* and holding = h Q*/2. Their sum simplifies to sqrt(2 K D h), the minimized ordering-plus-holding cost.