ABC Co. purchases an item. The annual demand for this is 75000 unites. The ordering cost is

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ABC Co. purchases an item. The annual demand for this is 75000 unites. The ordering cost is $60 per order. The holding cost is $4 per unit per year. The lead time for this item is 3 days. Assume 250 working days per year.

Find :

A) Economic production quantity, EOQ

B) What is optimal number of orders per year

C) What is the annual cost of ordering and holding inventory

D) What is the re-order point

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Management and Cost Accounting

ISBN: 978-1473748873

10th edition

Authors: Colin Drury

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Question Posted: Dec 27, 2017 02:08 AM

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ABC Co. purchases an item. The annual demand for this is 75000 unites. The ordering cost is

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Demand 75000 Ordering cost 6000 Hol...View the full answer

Management and Cost Accounting

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