A brewing company currently places orders monthly for the widgets used in its bottling process. The demand for the widgets is 83,062 per year. Each widget is bought for £0.02 and each order costs £8. The holding costs are currently 14% of the purchase price. (a) How many widgets are ordered per month? (b) Calculate the economic order quantity. (c) How many orders should the company place per year?
A brewing company currently places orders monthly for the widgets used in its bottling process. The demand for the widgets is 83,062 per year. Each widget is bought for £0.02 and each order costs £8. The holding costs are currently 14% of the purchase price. (a) How many widgets are ordered per month? (b) Calculate the economic order quantity. (c) How many orders should the company place per year?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
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