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Orchid Limited (OL) is a trading concern. It is planning to implement Economic Order Quantity model (EOQ) from 1 April 2019. OL deals in four
Orchid Limited (OL) is a trading concern. It is planning to implement Economic Order Quantity model (EOQ) from 1 April 2019. OL deals in four products each of which is purchased from a different supplier. To compute EOQ for one of its products Beta, the following data has been gathered: i. Actual data for the last year relating to Beta: ii. Total cost of purchase department for the last year amounted to Rs. 4,500,000 which included fixed cost of Rs. 1,350,000. A total of 100 purchase orders were issued during the last year. iii. Projections for the next year: iv. Closing inventory (excluding safety stock) varies in line with the sale volume. Required Calculate EOQ for Beta
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