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Question - Palma Corporation needs to know the frequency of placing its orders. The corporation presents the following pieces of information:
Units needed per month 5,000 units
Cost per order P25/order
Carrying Cost per order P4/unit
Normal lead time 10 days
Maximum lead time 14 days
Number of days in a month 30 days
Required -
1. Compute the EOQ.
2. Compute the Optimum number of order.
3. Compute the Total inventory cost.
4. Compute the Safety stocks.
5. Compute the Re order point.
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