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Hi Sir,
Could you provide me with the workings for the following question
PQR Co has a demand of 7500 units per month. Each unit costs $5, ordering costs are $100 per order and the inventory holding cost is 10% of the purchase price per year.
There is a lead time of 30 days between placing an order and receiving delivery.
If they order the EOQ each time at what level of inventory should a new order be placed?
Answer = 7,397 units
I am able to calculate the EOQ which is 6,000 units but unsure how to get to the answer?
Thanks for your time
They need to order when they have enough left to last for the lead time.
The demand per day is (7500 x 12) / 365, and the lead time is 30 days.
So they need to order when they have 30 x 7500 x 12 /365 = 7,397 in inventory.
Hey Sir
Could you please help me with the working of following question:Xplc has a dividend yield of 0.08% and dividend cover of 2.4
what is the P/E ratio?thankyou 🙂
Dividend yield = Dividend / MV ( = 0.08)
So MV = Dividend / 0.08Dividend cover = EPS / Dividend ( = 2.4)
So EPS = Dividend x 2.4PE ratio = MV / EPS
= (dividend / 0.08) / (dividend x 2.4)
Divide top and bottom by dividend:
PE ratio = (1/0.08) / 2.4
= 12.5 / 2.4 = 5.21
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