a. b. Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify...

 

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a. b. Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The restaurant predicted that it will sell 440,400 bowls every year at an average selling price of RM6 per bowl. They purchase the ingredients directly from a supplier in Thailand at a rate of RM2.50 per bowl. The costs for storing the ingredients are RM1.30 per bowl. Ordering costs are RM300 per order because it has to be transported from Thailand. Required: Calculate the EOQ (economic order quantity). Calculate the total inventory cost if orders are placed: 1 time (1) (11) (111) (iv) 20 times 30 times 50 times (4 marks) (16 marks) (Total 20: marks) a. b. Tom Yum Goong, a Thai restaurant in SS2 Petaling Jaya is trying to identify the optimal order quantity for their special tom yum ingredients. The restaurant predicted that it will sell 440,400 bowls every year at an average selling price of RM6 per bowl. They purchase the ingredients directly from a supplier in Thailand at a rate of RM2.50 per bowl. The costs for storing the ingredients are RM1.30 per bowl. Ordering costs are RM300 per order because it has to be transported from Thailand. Required: Calculate the EOQ (economic order quantity). Calculate the total inventory cost if orders are placed: 1 time (1) (11) (111) (iv) 20 times 30 times 50 times (4 marks) (16 marks) (Total 20: marks)

Answer rating: 100% (QA)

To calculate the Economic Order Quantity EOQ we can use the following formula EOQ 2 Annual Demand Or... View the full answer