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Q #05 (A) Following is the information's given below relating to the material inventory of Harold Co.; Monthly usage 600 units Unit cost of the
Q #05 (A) Following is the information's given below relating to the material inventory of Harold Co.; Monthly usage 600 units Unit cost of the product $24 Cost of placing an order $60 Holding cost of inventory 20% Required: 1. Calculate the EOQ using the tabular format if number of orders place during the year are: 1.2.3.4.5 or 6. 2. Currently company is ordering 3 times of equal units in a year what will be total cost saving if EOQ applied 5 (B) A company has assembled the following data for a given year; EOQ 5.000 units Total cost to place purchase orders for the year $10,000 Cost to purchase one order $50 Cost to carry one unit for one year $4 Required: What is the Estimated annual usage in units
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