Question: Dotcom sells video cards which it buys from a local manufacturer. Dotcom sells 25,000 cases evenly throughout the year. The cost of carrying one

Dotcom sells video cards which it buys from a local manufacturer. Dotcom

Dotcom sells video cards which it buys from a local manufacturer. Dotcom sells 25,000 cases evenly throughout the year. The cost of carrying one unit in inventory for one year is P15.00 and the order cost per order is P45. Required: a. What is the economic order quantity? b. If Dotcom would buy in economic order quantities, how much is total order costs? c. If Dotcom would buy in economic order quantities, how much is the total inventory carrying costs per year?

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a To find the economic order quantity we need to use the following formula EOQ sqrt2DSH Where D Annu... View full answer

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