OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
To help us keep materials up to do and add new content you can also donate
June 3, 2020 at 9:58 am
Hello, thank you for the well-explained lectures. Is it correct to say that Inventory value per unit = Purchase cost per unit ?
April 15, 2020 at 4:45 pm
A well explained chapter Mr. Moffat.
Thank you so much ,
Im eager to see what comes next !
Hope you’re well & staying safe in these trying times.
John Moffat says
April 15, 2020 at 5:23 pm
Thank you for your comment 🙂
April 3, 2020 at 5:17 pm
is it safe to say that Inventory cost = Holding cost + Reorder cost ?
and that Total cost = Inventory cost + purchase cost?
April 4, 2020 at 7:59 am
January 28, 2020 at 1:09 pm
Hello. Thank you for your lectures. They are very clear.
I wonder can the period for which we get the D, R and other data, different from one year, example a week or month? Do we always need yearly data?
January 28, 2020 at 3:23 pm
It can be any period, provided that D is the demand for the period (e.g. for a month) and Ch is the stockholding cost for the same period (e.g. per month). When using the EBQ formula, then again R is the production rate for the same period.
March 4, 2020 at 1:58 pm
Thank you. It makes sense :). Was looking at an exercise in a book that apparently was a mistake as had data for different periods of time and used them in a formula as they were. Just wanted to make sure. thanks again 🙂
March 4, 2020 at 3:11 pm
You are welcome 🙂
December 21, 2019 at 12:38 am
Hallo sir On the EBQ are we not supposed to multiply by 0.9 hence getting 2449 units instead of dividing and getting 2722 units
December 21, 2019 at 10:20 am
No, we do not multiply by 0.9, and the EBQ is 2722 units as I show in the lecture.
I am guessing that you are confusing it with the average inventory which is the EBQ divided by 2 and multiplied by 0.9.
December 22, 2019 at 1:07 am
ok thank you
December 22, 2019 at 9:31 am
November 9, 2019 at 4:48 pm
Why has the purchase cost not been included in the total cost? 50000 x 30$ = 1500000$
i.e. does the ‘shop’ not buy the unit off the ‘shops factory’ or our they provided free-of-charge?
November 9, 2019 at 6:40 pm
The purchase cost is incurred anyway – whatever the order quantity is each time. It is therefore irrelevant in deciding what the economic order quantity is.
August 15, 2019 at 5:09 pm
when you worked out the holding cost , why did you multiply bu 0.9 ?
September 10, 2019 at 5:27 pm
As he explained earlier we never reach maximum level of inventory because we use inventory gradually while it is produced, so we use this coefficient.
You must be logged in to post a comment.