Question
Problem 2 Abner Company has an annual demand of 13,000 units of Material A. The cost per unit is P14. The order cost is
Problem 2 Abner Company has an annual demand of 13,000 units of Material A. The cost per unit is P14. The order cost is P200 per order; and the annual inventory carrying cost unit is P5.20. Assume that the units will be required evenly throughout the year. Required: Compute for the following: per a. Economic order quantity b. Number of orders in a year. c. Average inventory based on economic order quantity. d. Total carrying cost and total ordering costs at economic order quantity.
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