Answered step by step
Verified Expert Solution
Question
1 Approved Answer
S Ndapuka Limited is in the business of supplying solar geysers to homesteads in the Oshana region. The solar geysers are imported from China. It
S Ndapuka Limited is in the business of supplying solar geysers to homesteads in the Oshana region. The solar geysers are imported from China. It costs the company N$5, 000 per each order placed. The expected sales for 2022 is 220 000 solar geysers. The holding cost is expected to be N$500 per unit per annum. One geyser is sold to the local customers at N$7,000. The company operates a 280-day year.
With the information above calculate: i) EOQ ii) Length of the order cycle iii) Annual holding cost iv) Number of orders per annum
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started