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Reorder Units

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Reorder Units

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  • April 12, 2021 at 7:08 pm #617306
    AvatarHamzaYusuf
    Participant
    • Topics: 45
    • Replies: 23
    • ☆☆

    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) 250

    I don’t know what does reorder units meant by. Can you pls explain what reorder units are here for?

    April 13, 2021 at 9:13 am #617363
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    Are you sure that you have copied the question exactly as it was written?

    The reorder size is the current order quantity each time. To get the economic order quantity you use the formula as explained in my free lectures.

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