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EOQ question in F2 paper.

This topic has 2 replies, 3 voices, and was last updated 10 years ago by alighere.

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June 10, 2015 at 12:54 pm #255992
Gjystina
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This was one of the questions in the F2 exam today. I wasn’t quiet sure how to answer it. It asks what is the new EOQ.
It states a demand of material was 10,000kg and the current EOQ was $8000. No opening or closing inventory.
What is the EOQ if the holding costs become $4 per unit?
June 10, 2015 at 3:54 pm #256055
Mihir
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i assumed $8000 was paid for average inventory. which would be 2000 units hence eoq is double that 4000
June 21, 2015 at 12:58 am #258227
alighere
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Hi. was the ordering cost given. Or was that the complete quest/?
How come you have written the EOQ in $. EOQ is an order quantity (shd also be in kgs)
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