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certain type of computer costs P80,000 per unit, and the annual holding cost is 25% of the per-unit cost. Annual demand is 10,000 units, and the order cost is P12,000 per order. 1. What is the approximate economic order quantity (round off to nearest whole number)? 2. If because of inflation the ordering cost increase to P12,720 per order, by how much will the EOQ change (indicate if the change is an increase or decrease

certain type of computer costs P80,000 per unit, and the annual holding cost is 25% of the per-unit cost. Annual demand is 10,000 units, and the order cost is P12,000 per order. 1. What is the approximate economic order quantity (round off to nearest whole number)? 2. If because of inflation the ordering cost increase to P12,720 per order, by how much will the EOQ change (indicate if the change is an increase or decrease

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Problem #4. A certain type of computer costs P80,000 per unit, and the annual holding cost is 25% of the per-unit cost. Annual demand is 10,000 units, and the order cost is P12,000 per order. 1. What is the approximate economic order quantity (round off to nearest whole number)? 2. If because of inflation the ordering cost increase to P12,720 per order, by how much will the EOQ change (indicate if the change is an increase or decrease)?
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