Economic Order Quantity

This topic has 1 reply, 2 voices, and was last updated 2 years ago by mrjonbain.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
September 1, 2023 at 1:23 pm #691121
salik58
Participant
- Topics: 5
- Replies: 3
14.A company uses Economic Order Quantity (EOQ) to arrive at optimal quantity for its single raw material. The following data relates to the inventory costs:

Purchase price $15 per item
Carriage costs $30 per order
Ordering costs $10 per order
Storage costs 20% of purchase price

Annual demand is 5,000 units.
What is the EOQ to the nearest whole unit?

A.177 units
B.100 units
C.365 units

Answer is B. 100 Units How ??

according to my calculations its 365 = square root (2*40*5000)/3
September 2, 2023 at 10:34 am #691179
mrjonbain
Moderator
- Topics: 6
- Replies: 2606
I think you are right. Unless someone has another explanation.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.