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Forums › ACCA Forums › ACCA MA Management Accounting Forums › INVENTARY CONTROL
HEY group members plzz help me to solve this question
Demand for a product is 2000 units per year and is even throughout the year . the costs of holding one unit of the product in inventory is $12 per year and cost of placing an order is $30 . the EOQ model is used to determine the order size for the product.
WHAT IS THE LENGTH OF TIME BETWEEN THE RECEIPT OF CONSECUTIVE ORDERS FROM THE SUPPLIER FOR THIS PRODUCT ( TO THE NEAREST ASSUMING 365 DAYS PER ANNUM)
……………….. days.
The problem is this question is requirement ? what is the meaning of LENGTH OF TIME BETWEEN THE RECEIPT OF CONSECUTIVE ORDERS? i calculate EOQ is 500.
plzz help me in this question.