1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Reorder Point ( ROP) if the lead time is 2 weeks

1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Reorder Point ( ROP) if the lead time is 2 weeks

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How would I calculate this problem? I just guessed on which answer made sense to me. Please help. thank you in advance.
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