Question
A company spends $187200 to purchase material for its production line. Inventory carrying costs are calculated at 25% of the average value of inventory, and
A company spends $187200 to purchase material for its production line. Inventory carrying costs are calculated at 25% of the average value of inventory, and the cost of placing each order has been set at $50:
a.Calculate the EOQ in $ or Calculate the EOQ in units.
Knowing that the vearly requirements of materials are 288 MT (Metric tons).
b. Total optimum cost. (please break for me in the answer each type of costs and amounts that you added together to get the total optimum cost).
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
