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AC AG 7:06 63 ORGON 2. Pinky White Company has an annual usage of inventory of 25. 000 units. The cost of placing an order
AC AG 7:06 63 ORGON 2. Pinky White Company has an annual usage of inventory of 25. 000 units. The cost of placing an order is RM 130. The carrying cost of a company is RM 2.50 of its purchasing price. The company maintains 120 units as a safety stock level and it normally takes 2 weeks to receive an order made today i. Economic order quantity, 1250 52(25,000)(130)/2.50 16.500.000/2.50 = $2,600.000 = 1.612.45 @1612 units C Total inventory cost. S XO + E0Q + SS X CC EOQ 2 = 25,000/1612 (130) + 1612/2 + 120 x 250 = 2016.13 + 2315 = RM4.33113 iv. Reorder point. (d x 1) + SS = 25,000/360 x 14 + 120 = 1.092 units 3. Mamasab Bakery orders and distributes ready-made chocolate muffin to local bakeries all over Malaysia. They buy their muffin from a well-known bakery in Kelantan. Muffins are ordered in lots that require quantities of 300 units per order, and AC AG 7:06 63 ORGON 2. Pinky White Company has an annual usage of inventory of 25. 000 units. The cost of placing an order is RM 130. The carrying cost of a company is RM 2.50 of its purchasing price. The company maintains 120 units as a safety stock level and it normally takes 2 weeks to receive an order made today i. Economic order quantity, 1250 52(25,000)(130)/2.50 16.500.000/2.50 = $2,600.000 = 1.612.45 @1612 units C Total inventory cost. S XO + E0Q + SS X CC EOQ 2 = 25,000/1612 (130) + 1612/2 + 120 x 250 = 2016.13 + 2315 = RM4.33113 iv. Reorder point. (d x 1) + SS = 25,000/360 x 14 + 120 = 1.092 units 3. Mamasab Bakery orders and distributes ready-made chocolate muffin to local bakeries all over Malaysia. They buy their muffin from a well-known bakery in Kelantan. Muffins are ordered in lots that require quantities of 300 units per order, and
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