Luster Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6. Given these data, answer the following questions: (A) What is the economic order quantity? (B) How many orders are required each month? A. (A) 32 and (B) 6 B. (A) 32 and (B) 8 C. (A) 52 and (B) 6 D. (A) 52 and (B) 8 E. (A) 62 and (B) 10

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 8E: Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the...
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Luster Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6. Given these data, answer the following questions:

(A) What is the economic order quantity?

(B) How many orders are required each month? 
A. (A) 32 and (B) 6
B. (A) 32 and (B) 8
C. (A) 52 and (B) 6
D. (A) 52 and (B) 8
E. (A) 62 and (B) 10

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