Question
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
b. Calculate the number of orders per year.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
