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Delicious (Pty) Ltd sells Nespresso cappuccino pods at R70 per box. The company purchases them at R40 per box from the supplier. The ordering
Delicious (Pty) Ltd sells Nespresso cappuccino pods at R70 per box. The company purchases them at R40 per box from the supplier. The ordering cost is R10 per order and the carrying cost is R20 per box per annum. It takes the supplier five days from receiving the order for the cappuccinos to deliver. Delicious (Pty) Ltd sells 4 000 boxes per year. What economic order quantity (EOQ) should the company apply for inventory management purposes? Round off the answer to the nearest whole number. A. 76 boxes B. 45 boxes C. 126 boxes D. 63 boxes
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
