Oleumplc sells a soap called Fragro , which it buys in boxes of 1,000 bars with ordering

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Oleumplc sells a soap called Fragro , which it buys in boxes of 1,000 bars with ordering costs of Tzs. 5,000 per order . Retail sales are 200,000 bars per year and holding costs are TZS. 195,312.50 per year per 1,000 bars.

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(a) What is the economic order quantity and the average inventory level for Fragro ?

(b) What is Fragro's Total Cost of Inventory ?

Related Book For answer-question

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: Apr 13, 2023 02:08 AM

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Oleumplc sells a soap called Fragro , which it buys in boxes of 1,000 bars with ordering

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a Economic Order Quantity EOQ and Average Inventory Level EOQ is a formula used to determine the opt... View the full answer

Advanced Accounting

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