KLM plc deals in a fast moving product,Kali.Its daily requirement is 120 units of kali.It costs KLM
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KLM plc deals in a fast moving product,Kali.Its daily requirement is 120 units of kali.It costs KLM plc $ 100 for every order of Kalikali that sells at $ 270 per unit.The stock holding cost of Kali is 15 % of the purchase price. Required (a) Determine the order quantity that minimises the total cost of ordering and holding stock. (b) The management of KLM plc was contemplating ordering a quantity of 755 units as they felt its more economical in line with their demand.As a stock controller,would you advice them to do so? Explain why ?
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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