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Sir, I’m trying to find out where the EOQ units are in the following question to calculate the cost of order & holding cost. I have been given this information in the question that I am attempting!
Annual Units 10,000
Holding cost $1.25
Cost of order $50
Reorder size (units) 250I don’t know what does reorder units meant by. Can you pls explain what reorder units are here for?
I have calculated EOQ like this squareroot (2*10000*50/1.25) =894 units
Is this correct?You have asked this same question twice and I have answered your other post of this question.
They are currently ordering 250 units each time. The economic order quantity is 894 units as you have written.
(Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and workings 🙂 )
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