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Reorder Units

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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April 12, 2021 at 7:08 pm #617306
HamzaYusuf
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
John Moffat
Keymaster
- Topics: 57
- Replies: 54702
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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