5. Economic Order Quantity Jimin Company requires 40,000 units for its signature product BTS. The units will be used evenly throughout the year. The cost to place one order is P 20 while the cost to carry the inventory for one year is P 0.40 per unit. REQUIRED: A) Determine the optimal order quantity (EOQ). B) How many orders should be placed within the year? C) How often should the units be ordered within a year? D) Determine the average inventory in units.
5. Economic Order Quantity Jimin Company requires 40,000 units for its signature product BTS. The units will be used evenly throughout the year. The cost to place one order is P 20 while the cost to carry the inventory for one year is P 0.40 per unit. REQUIRED: A) Determine the optimal order quantity (EOQ). B) How many orders should be placed within the year? C) How often should the units be ordered within a year? D) Determine the average inventory in units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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