A factory requires Rs.1,500 units of an item per month. The cost of each unit is Rs.27.
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A factory requires Rs.1,500 units of an item per month. The cost of each unit is Rs.27. The cost per order is Rs.150 and inventory carrying charge works out to 20% of the average inventory. Find out the economic order quantity (EOQ) and ascertain the number of orders to be placed per year. Would you accept a 2% price discount on a minimum supply of 1,200 units?
Related Book For
Financial and Managerial Accounting
ISBN: 978-1337119207
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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