m3 Aeon Laketown prodicts that 10,000 units of materials will be used during the year. The expected daily usage is 40 units. The expocted lead time is 6 days, and there is a safoty stock of 300 units. Aeon expects that the cost of materials will be P480 per unit. It anticipates that it will cost P200 to place each order. The annual carrying cost is P1.00 per. unit. Required: a. Calculate the order point. b. Calculate the oconomic order quantity. . Calculate the total ordering and carrying costs at EOQ point.
m3 Aeon Laketown prodicts that 10,000 units of materials will be used during the year. The expected daily usage is 40 units. The expocted lead time is 6 days, and there is a safoty stock of 300 units. Aeon expects that the cost of materials will be P480 per unit. It anticipates that it will cost P200 to place each order. The annual carrying cost is P1.00 per. unit. Required: a. Calculate the order point. b. Calculate the oconomic order quantity. . Calculate the total ordering and carrying costs at EOQ point.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 19P
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