- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Could you please explain how to calculate the cost of holding in the following question.
A company has demand for 50,000 units p.a.
They produce their own units at a cost of $30 per unit, and are capable of producing at rate of 500,000 units p.a.
Machine set-up costs are $200 for each batch.
Stock holding costs are 10% p.a. of stock value.
Calculate the Economic Batch Quantity.the answer is 2722 units
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.