Question
A firm uses 6,000 tonnes of commodity X every year. The fixed transaction costs involved with each order are 80. Each tonne of X held
A firm uses 6,000 tonnes of commodity X every year. The fixed transaction costs involved with each order are 80. Each tonne of X held in stock costs 6 per annum. How many separate orders for X should the firm make during the year? 2. If each order for a batch of components costs 700 to make, storage costs per annum per component are 20 and annual usage is 4,480 components, what is the optimal order size?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
