Question 4: Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price. The supplier quotes the following prices for the component. No of units bought at time Price per unit Less then 1000 OMR 10 1000 to 2999 OMR 9.5 3000 and above OMR 9 What is the optimal order quantity?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
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Question 4:
Compute the EOQ given the following information.
The annual consumption is 6000 units, ordering cost is RO 60 per
order and carrying cost is 20% of the price.
The supplier quotes the following prices for the component.
No of units bought at time Price per unit
Less then 1000
OMR 10
1000 to 2999
OMR 9.5
3000 and above
OMR 9
What is the optimal order quantity?
Transcribed Image Text:Question 4: Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price. The supplier quotes the following prices for the component. No of units bought at time Price per unit Less then 1000 OMR 10 1000 to 2999 OMR 9.5 3000 and above OMR 9 What is the optimal order quantity?
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