Question
A purchasing manager receives the following information from the accounting department: Cost of placing an order = $180 Unit cost = $75 Annual inventory holding
A purchasing manager receives the following information from the accounting department:
Cost of placing an order = $180
Unit cost = $75
Annual inventory holding costs = 20%
Annual Demand = 15,500 units
calculate the following:
a. EOQ
b. avg number of orders
c. total annual inventory costs
d. If 50 orders are placed per year, what is the total annual inventory cost?
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Handbook Of Asian Finance Financial Markets And Sovereign Wealth Funds
Authors: David Lee, Greg N. Gregoriou
1st Edition
0128009829, 978-0128009826
