Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product costs R100 per unit. The ordering cost is R5 per order. The holding cost is 10% of the unit purchase price. Which one of the following represents the annual economic order quantity (rounded off to the next whole number)? Select one: O A. 142 О В. 980 О С. 283 O D. 490

Pioneer Limited purchases a product which has a steady monthly demand of 20 000 units. The product costs R100 per unit. The ordering cost is R5 per order. The holding cost is 10% of the unit purchase price. Which one of the following represents the annual economic order quantity (rounded off to the next whole number)? Select one: O A. 142 О В. 980 О С. 283 O D. 490

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

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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