Economics A company sells apples. Annual demand is 20,000, the order cost is $150.00 and the holding cost is 20% of the cost of each item. Cost of each item is $80.00. Calculate: a. The economic order quantity EOQ) b(i) the annual order cost ii) the annual holding cost iii ) total annual cost including cost of items.
Economics A company sells apples. Annual demand is 20,000, the order cost is $150.00 and the holding cost is 20% of the cost of each item. Cost of each item is $80.00. Calculate: a. The economic order quantity EOQ) b(i) the annual order cost ii) the annual holding cost iii ) total annual cost including cost of items.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Economics
A company sells apples. Annual demand is 20,000, the order cost is $150.00 and the holding cost is 20% of the cost of each item. Cost of each item is $80.00.
Calculate:
a. The economic order quantity EOQ)
b(i) the annual order cost
ii) the annual holding cost
iii ) total annual cost including cost of items.
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