Solution-How much is the total carrying cost and total

How much is the total carrying cost and total ordering cost

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Reference no: EM132735054

Barter corporation has been buying Product BB in lots of 4 800 units. This number is good for four months supply. The cost per unit is P 300 and the cost per order is P 600. The annual carrying cost is 25%.

Problem 1: Using the formula method, what is the economic order quantity?

Problem 2: Use the tabular method, assuming the following order sizes: 100, 200, 240, 480, 720, 960, 1440, 2880

How much is the total carrying cost and total ordering cost at EOQ point?
How many times should the company place the order using the most economical order?
What is the frequency, in days, of making the order assuming a 365-calenday days in a year?

Reference no: EM132735054

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How much is the total carrying cost and total ordering cost

Reference no: EM132735054

Reference no: EM132735054

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