A company has an annual demand for material “p” of 25,000 tons per annum. The cost price per ton is Ksh2, 000 and stock holding...

      

A company has an annual demand for material “p” of 25,000 tons per annum. The cost price per ton is Ksh2, 000 and stock holding is 25% per annum of the stock value. Delivery cost per batch is Ksh400.
Calculate the Economic Order Quantity(E.O.Q)

  

Answers


Wilfred
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This means that 200units must be purchased at one time. If the batch size is more than or less than
200 units then stock holding and ordering costs will be higher
Wilfykil answered the question on April 17, 2019 at 07:16


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