A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and it costs OMR 2500 per unit to purchasedThe cost of reordering is OMR 50 each order. The annual holding cost is OMR 500 per unitWhich economic order quantity policy, either round-up or round down for inventory ordering to be used here to minimize total inventory cost per year? The corresponding order quantity will be: a. None is correct B. 15 C. 13 d. 12 e. 14
A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and it costs OMR 2500 per unit to purchasedThe cost of reordering is OMR 50 each order. The annual holding cost is OMR 500 per unitWhich economic order quantity policy, either round-up or round down for inventory ordering to be used here to minimize total inventory cost per year? The corresponding order quantity will be: a. None is correct B. 15 C. 13 d. 12 e. 14
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 19PROB
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A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and it costs OMR 2500 per unit to purchasedThe cost of reordering is OMR 50 each order. The annual holding cost is OMR 500 per unitWhich economic order quantity policy, either round-up or round down for inventory ordering to be used here to minimize total inventory cost per year? The corresponding order quantity will be:
a. None is correct
B. 15
C. 13
d. 12
e. 14
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