[juliasmp]

thank you very much for your help John, 🙂

[juliasmp]

Your 1st line:

“Well, after first month it has to be left 9000*20%=1800 units”

Why do you take 20% from 9000 which is the figure for month 2 and you are not taking 20% from month 1 (8000 units)?

I can kind of see your logic but when I’ve read the questions I assumed that e.g. we need to take 20% from month 1 and add it to month 2 if it makes sense…

[juliasmp]

I think the answer is 188,000

Can you tell me how you got it please?

[juliasmp]

Thank you for your response.

Qn2 – I was trying to find reorder cost & holding cost without calculating EOQ 🙁

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