Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. Syarikat Muda Osman is trying to determine the optimal order quantity for a popular book. The store feels that the book will sell approximately
5. Syarikat Muda Osman is trying to determine the optimal order quantity for a popular book. The store feels that the book will sell approximately 17, 000 copies in the first 6 months and sales will be doubled in the following 6 months. The store buys the book at a wholesale price of RM12 and sells it at the price of RM17 each. The carrying cost per copy is RM3 and it costs RM95 to order more books. The company maintains 5.200 units as the desired safety stock and it normally take 5 weeks to receive the order made.Assume 50 weeks in one year. i. Determine the optimal EOQ level. ii. What would be the total costs for ordering the books? should iii. At what inventory level reorder be made
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started