11.Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity? 12.Determine the total number of orders in a year. *
11.Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity? 12.Determine the total number of orders in a year. *
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 19P
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11.Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity?
12.Determine the total number of orders in a year. *
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