Question
Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a
- Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a 360-day year.) (1 mark)
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
- Calculate
- The economic order quantity. (1.5 marks)
- The number of orders required per year. (1 mark)
- The total cost of ordering and holding the components for the year. (1 mark)
- Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a 360-day year.) (1 mark)
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
- Calculate
- The economic order quantity. (1.5 marks)
- The number of orders required per year. (1 mark)
- The total cost of ordering and holding the components for the year. (1 mark)
- Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a 360-day year.) (1 mark)
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
- Calculate
- The economic order quantity. (1.5 marks)
- The number of orders required per year. (1 mark)
- The total cost of ordering and holding the components for the year. (1 mark)
- Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a 360-day year.) (1 mark)
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
- Calculate
- The economic order quantity. (1.5 marks)
- The number of orders required per year. (1 mark)
- The total cost of ordering and holding the components for the year. (1 mark)
- Assuming that there is no safety stock and that the present stock level is 400 components, when should the next order be placed? (Assume a 360-day year.) (1 mark)
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
- Calculate
- The economic order quantity.
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
COVID-19 Ltd produces a specialized product; LOCKDOWN which has a constant monthly demand of 4000 units. The LOCKDOWN requires a component which COVID-19 Ltd purchases from a supplier at GHS10 per unit. The component requires a three-day lead time from the date of order to the date of delivery. The ordering cost is GHS0.60 per order and the holiday cost is 10% per annum.
Required:
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