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(a) GameStart Bhd., a toy manufacturer is planning to replenish its inventories and is considering the following options: Option Order Quantity (Units) Annual Demand
(a) GameStart Bhd., a toy manufacturer is planning to replenish its inventories and is considering the following options: Option Order Quantity (Units) Annual Demand (Units) Total Holding Cost (RM) Total Ordering Cost (RM) Total Inventory Costs (RM) A B 2,250 2,411 2,670 250,000 5,400 5,786 6,408 6,200 5,786 5,225 11,600 11,572 11,633 (b) Recommend ONE (1) option from the above to the company with justifications based on the concept of Economic Order Quantity (EOQ) inventory management technique. Discuss FOUR (4) requirements to implement the Just-in-Time (JIT) inventory management system.
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a Based on the concept of Economic Order Quantity EOQ the option with the lowest total inventory cost should be selected In this case we can calculate ...
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
