Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. * SHOW SOLUTIONS a.) What is the economic order quantity? (choose from the choices) -282 -200 -75 -52 -35 b.) How many orders should be made each year? (choose from the choices) - 9 -12 -13 -17 -64
Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. *
SHOW SOLUTIONS
a.) What is the economic order quantity? (choose from the choices)
-282 -200 -75 -52 -35
b.) How many orders should be made each year? (choose from the choices)
- 9 -12 -13 -17 -64
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