Question
A raw material has a cost of $20 per unit and there is an annual requirement of 10,400 units per year. Storage/carrying costs are 25%
A raw material has a cost of $20 per unit and there is an annual requirement of 10,400 units per year. Storage/carrying costs are 25% of part value. The cost of placing and receiving an order is $60. Determine:
a) The number of orders to place economically per year
b) The EOQ
c) Annual ordering cost
d) Annual holding cost
e) Total annual cost
f) Maximum and average quantity in storage
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Auditing Fundamentals In A South African Context
Authors: Gerrit Penning, Rika Butler, Pieter Von Wielligh, Frans Prinsloo
2nd Edition
0190749040, 978-0190749040
