A manufacturer has to supply his customers with 1200 units of his product per annum. The inventory
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Question:
- A manufacturer has to supply his customers with 1200 units of his product per annum. The inventory carrying cost amounts to ₤ 1.2 per unit. The set-up cost per run is ₤ 160.
- Find:
- 1 EOQ
- 2 Minimum average yearly cost
- 3 Optimum no of orders per year and days
- 4 The optimum time between orders (optimum period of supply per optimum order)
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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