(a) One Cycle Limited (OCL) is a manufacturer of sports bicycles. The company uses Pirelli-P44X tyres in its sports bicycles. The following information is provided in relation to Pirelli-P44X tyres for the year 2021. V The annual demand for Pirelli-P44X tyres is 400,000 tyres. V The ordering cost per order is Kshs 10,500. V The Holding cost per unit of Pirelli-P44X tyre is Shs 158. Required; i) Calculate the Economic order Quantity (EOQ) for the Pirelli-P44X tyres using the information provided above
(a) One Cycle Limited (OCL) is a manufacturer of sports bicycles. The company uses Pirelli-P44X tyres in its sports bicycles. The following information is provided in relation to Pirelli-P44X tyres for the year 2021. V The annual demand for Pirelli-P44X tyres is 400,000 tyres. V The ordering cost per order is Kshs 10,500. V The Holding cost per unit of Pirelli-P44X tyre is Shs 158. Required; i) Calculate the Economic order Quantity (EOQ) for the Pirelli-P44X tyres using the information provided above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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