=+17-20 KK Sensitivity of EOQ to changes in relevant ordering and carrying costs (Spreadsheet) OBJECTIVE 2 Gration
Question:
=+17-20 KK Sensitivity of EOQ to changes in relevant ordering and carrying costs (Spreadsheet)
OBJECTIVE 2 Gration Ltd’s annual demand for model PP5 is 18500 units. Gration Ltd is unsure about the relevant carrying cost per unit per year, but expects it to be between $10 and $40 and the relevant ordering cost per purchase order will be either $250 or $350. Hint: the task is simple if you use Excel. The formula is ((2*Ordering Cost*Demand)/Carrying Cost)^.5.
Required 1 Determine the EOQ for Gration Ltd for the following combinations of ordering costs and carrying costs: (250, 10), (250, 20),
(250, 30), (250, 40); (350, 10), (350, 20), (350, 30), (350, 40).
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan