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MaWood Limited uses the economic order quantity (EOQ) model to establish the re order quantity for raw material Y. The company holds no buffer stock.
MaWood Limited uses the economic order quantity (EOQ) model to establish the re order quantity for raw material Y. The company holds no buffer stock. Information relating to raw material Y is as follows:
AnnualUsage 48,000 units
PurchasePrice
80 per unit
Ordering Costs
120 per order
Annualholding costs 10% of the purchase price
MaWood Limited uses the economic order quantity (EOQ) model to establish the re order quantity for raw material Y. The company holds no buffer stock. Information relating to raw material Y is as follows:
AnnualUsage 48,000 units
PurchasePrice
80 per unit
Ordering Costs
120 per order
Annualholding costs 10% of the purchase price
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