1. Barter corporation has been buying Product BB in lots of 4 800 units. This number is good for four months supply. The cost per unit is P 300 and the cost per order is P 600. The annual carrying cost is 25%.

a. Using the formula method, what is the economic order quantity?

b. Use the tabular method, assuming the following order sizes: 100, 200, 240, 480, 720, 960, 1440, 2880

How much is the total carrying cost and total ordering cost at EOQ point?

How many times should the company place the order using the most economical order?

What is the frequency, in days, of making the order assuming a 365-calenday days in a year?

2 Quick Corp. usually buys Product X in lots of 1 200 units which represent a four month supply. The cost per unit is P 100: the cost per order is P 200 and the annual inventory carrying cost for one unit is 25%

Required: Compute the most economical order to make

How many orders to make during the year?

What is the average inventory?

How much is the total ordering and carrying cost?

Answer rating: 100% (QA)

a Using the formula method the economic order quantity EOQ can be calculated as EOQ 2DP C where D an... View the full answer