Question: XYZ Ltd . uses the Economic Order Quantity ( EOQ ) model to manage its inventory. The following information is provided: Annual demand: 2 5

XYZ Ltd. uses the Economic Order Quantity (EOQ) model to manage its inventory. The following information is provided:
Annual demand: 25,000 units
Cost per order: Sh.800
Holding cost per unit per year: Sh.3
Lead time: 5 days
The company operates 365 days a year
Required:
i) Calculate the EOQ for XYZ Ltd.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

EOQ and the impact of quantity discounts Point Ltd uses the economic order quantity (EOQ) model to establish the re- order quantity for raw material Y. The company holds no buffer stock. Information...

Q:

Question 2 SIMTECH Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Z. The company holds no buffer inventory. Information relating to raw material Z...

Q:

1. A companyis preparing a quotation for a one-off job that would require 1,000 kg of Material H. There are 100kg of Material H in inventory that were bought at a cost of 3.60 per kg. The company...

Q:

Hi Tutor, I have a question that is asking me to answer these questions as part of my ACCA exam preparation, can you please explain and give an example on how to deal with these questions. Thanks...

Q:

Q3) Economic Order Quantity (EOQ) and Reorder Point (ROP) with Inventory Visualization A retailer sells a product with a steady annual demand of 10,000 units. The company operates 250 days per year....

Q:

You are the project manager of StarGate Inc., a company that specializes in the design and production of durable cell phone covers. Your current project involves the manufacturing and distribution of...

Q:

In analyzing Table 9-3, we concluded that movie length is not affected by an interaction between star rating and CTR rating; it is not affected by star rating; and it is not affected by CTR rating....

Q:

To raise capital fundh, Twist Inc, issoed $ 2 millice worth of debentires with warrasts atached. The warranss had an esercise price of $ 1 5 , and each warrant entitled the holker to reo ihares of...

Q:

Read the articles on journaling and review the template provided. Identify what approach, to journaling, in the articles you found useful and why. Post to the discussion forum that you have reviewed...