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The Curacha Company uses 20, 000 units of Material A in making finished product. The cost to place one order for Material A is P8.
The Curacha Company uses 20, 000 units of Material A in making finished product. The cost to place one order for Material A is P8. 00 and the annual cost to carry one Material A is P2.00
- The economic order quantity for Material A is
a. 100 units
b. 400 units
c. 283 units
d. 565 units
- The cost to place one order increased by P10 and the cost to carry one Material A in stock remains the same, the economic order quantity will be
a. 600 units
b. 447 units
c. 425 units
d. 560 units
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