The john equipment company estimates its carrying cost at 15% and its ordering costs at $90 per order. The estimated annual requiment is 78,000 units at a price of $4 per unit. 

Required:

(i) Determine the economic order quantity

(ii) No. of orders to be placed in a year

(iii) Determine the total relevant costs

Answer rating: 100% (QA)

To determine the Economic Order Quantity EOQ we can use the formula EOQ 2 D S H Where D Annual deman... View the full answer