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How many orders to make during the year

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Reference no: EM132735056

Quick Corp. usually buys Product X in lots of 1 200 units which represent a four month supply. The cost per unit is P 100: the cost per order is P 200 and the annual inventory carrying cost for one unit is 25%

Required:

Problem 1: Compute the most economical order to make

  1. How many orders to make during the year?
  2. What is the average inventory?
  3. How much is the total ordering and carrying cost?

Reference no: EM132735056

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