ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Given the information below;D-4000 per yearHC-RM 9 per yearSetup cost-RM25Lead time-5 daysWorking days per year-250 daysCalculate EOQ, ROP and Average Q. Choose the right answer.
|
|
149.07, 80, 74.55
|
|
|
148.07, 80, 75
|
|
|
146.07, 80, 80
|
|
|
145.08, 79.90, 76
|
Explanation:
Detailed explanation-1: -Economic Order Quantity The total cost of inventory is the sum of the purchase, ordering and holding costs. As a formula: TC = PC + OC + HC, where TC is the Total Cost; PC is Purchase Cost; OC is Ordering Cost; and HC is Holding Cost.
Detailed explanation-2: -Economic order quantity (EOQ) is the ideal quantity of units a company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has been refined over time.
There is 1 question to complete.