Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jeka Limiteds annual demand for materials is 500 000 units, and the ordering cost is P100 000 per order and each unit costs P30 000.

Jeka Limiteds annual demand for materials is 500 000 units, and the ordering cost is P100 000 per order and each unit costs P30 000. The estimated cost of holding unit of stock is 15% of the purchase cost. a. Calculate the economic order quantity (EOQ) and (3 marks) b. Calculate the number of orders per year. (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N Hyman

12th Edition

0357442156, 978-0357442159

Students also viewed these Finance questions

Question

=+6 Why is there no term for Q4?

Answered: 1 week ago

Question

Define line and staff authority

Answered: 1 week ago

Question

Define the process of communication

Answered: 1 week ago

Question

Explain the importance of effective communication

Answered: 1 week ago

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago