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find the eoq using formula method Mei Mei sells a product called Dewberry Tart. To produce the product, Mei Mei Sdn Bhd uses one main
find the eoq using formula method
Mei Mei sells a product called Dewberry Tart". To produce the product, Mei Mei Sdn Bhd uses one main ingredient, which is Dewberry Powder. The expected monthly production of Dewberry Tart" for the year 2019 is 6,200 containers. A container of "Dewberry Tart" uses 250 grams of Dewberry Powder. The Dewberry Powder was purchased from a wholesale distributor in Singapore at a purchase price of RM150 per kilogram. The freight and forwarding cost per order is RM350. The staffing cost and documentation cost is RM220 per order. Mei Mei Sdn Bhd has incurred the insurance cost of keeping the inventory at RM5 per kilogram. The cost of obsolescence and deterioration of stock is estimated at 5% of the inventory value. It takes between one to two weeks for the Dewberry Powder to be delivered to Mei Mei Sdn Bhd. The weekly production of Dewberry Tart" was between 1,000 to 1,200 containers
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