Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200...

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Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity? Determine the total ordering cost for the year. Assuming a safety stock equal to days requirement, the reorder point is ? Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity? Determine the total ordering cost for the year. Assuming a safety stock equal to days requirement, the reorder point is ?

Answer rating: 100% (QA)

To calculate the Economic Order Quantity EOQ we can use the EOQ formula EOQ sqrt 2 D S H where D Ann... View the full answer