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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › material control
A retailer has a steady demand for rugby balls at 50 a month. Each ball costs $6 from the supplier. The costs involved in placing an order are $10 and the stockholding costs are 20% of the stockholding value per annum. How many orders will be placed per annum? A 1.73
B 6
C 8.48
D 100
Please do not simply type out full questions and expect a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about.
You use the EOQ formula that you are provided with in the exam.
D = 12 x 50
Co = 10
Ch = 20% x $6
This is all explained in my free lectures on inventory control. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.