Rodney Limited produces a product which has a steady monthly demand of 4 000 units. The product requires a component that is purchased from a supplier at R20 per unit. The ordering cost is R1.20 per order. The holding cost is 10% of the unit purchase price.

Calculate the economic order quantity for the year.

Answer rating: 100% (QA)

To solve the problem we would use the Economic Order Quantity EOQ formula Th... View the full answer