Question
A manufacturer purchases 2000 units of a certain component p.a. @ AED 50 per unit from outside supplier. The annual usage is 2000 units, order
A manufacturer purchases 2000 units of a certain component p.a. @ AED 50 per unit from outside supplier. The annual usage is 2000 units, order placing and receiving cost is AED 200 per order and cost of holding one unit of the component for one year is AED 5. Calculate the Economic Order Quantity by tabular method. Also calculate the number of orders to be placed each year.
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
6th Canadian Edition
1119731828, 9781119731825
