BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In calculating no of order in inventory management, what unit to represent the answer of no of order
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RM
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times
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quantity
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quality
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Explanation:
Detailed explanation-1: -A number of orders per year = Annual quantity demanded/ EOQ.
Detailed explanation-2: -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-3: -optimal order quantity = the square root of ([2DO] / H) Note that in this equation: D = Annual unit demand. O = Order costs per purchase. H = Holding costs per unit.
There is 1 question to complete.