Reference no: EM132252201
Calculate the costs of stock for a product with the following information:
Demand per year: 100000 units/year
Production time: 120 seconds/unit
We buy a machine to produce this demand: Cost= 200000 €
Cost of Manpower: 20 €/hour
Cost of Materials: The product uses two materials (A and B)
Cost of Material A: 250 € / material for 100 units
Cost of Material B: 100 € / material for 20 units
Factor i = 0.20 (20 %)
Cost of Administration Staff: 25 €/hour
Time to prepare one order: 10 minutes
Cost of Transport: 20 €
When you know the different costs (Citem, Ch, Co), calculate the Economic Order Quantity (EOQ).