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?

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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?
Transcribed Image Text: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?
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