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Problem 1 Miguel Company uses 2,000 units of bolts in its production annually. Each bolts costs P200, and the carrying costs are estimated at
Problem 1 Miguel Company uses 2,000 units of bolts in its production annually. Each bolts costs P200, and the carrying costs are estimated at 10% of the inventory cost. Order costs comprise of P5 for placing a long-distance call to make the order and P20 for transporting the order by delivery van to the company store room. Required: Compute the following: A. Economic order quantity for bolts B. Total order costs C. Total Carrying costs.
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