Al-Haidari Catering Company planned to purchase its needs from one of the materials involved in its production according to the economic quantity of the order (EOQ) at a rate of (2500) kg each time at a price of (50) dinars per kg. The costs of issuing the supply order were estimated at 180 dinars, while the cost of storage was estimated at (12%). of the average value of inventory. Required: a- Find the annual needs of the material. b- Find the total cost

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section7.3: Pricing Models
Problem 4P
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Al-Haidari Catering Company
planned to purchase its needs
from one of the materials
involved in its production
according to the economic
quantity of the order (EOQ) at
a rate of (2500) kg each time
at a price of (50) dinars per
kg. The costs of issuing the
supply order were estimated
at 180 dinars, while the cost
of storage was estimated at
(12%). of the average value
of inventory. Required: a-
Find the annual needs of the
material. b- Find the total cost
Transcribed Image Text:Al-Haidari Catering Company planned to purchase its needs from one of the materials involved in its production according to the economic quantity of the order (EOQ) at a rate of (2500) kg each time at a price of (50) dinars per kg. The costs of issuing the supply order were estimated at 180 dinars, while the cost of storage was estimated at (12%). of the average value of inventory. Required: a- Find the annual needs of the material. b- Find the total cost
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