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Calculate the most economical purchase quantity

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Question: PT Anjani requires 500,000 units of raw materials, with a price per unit of Rp. 7,000. The fee required for each order is Rp. 25,000.If holding costs are estimated to be 25% of the average inventory value, then:

1) Calculate the most economical purchase quantity (EOQ)

2) How many orders must be made in a year?

3) How many days does the company place an order (1 year = 365 days)?

 

Reference no: EM133598293

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