a. Using the appropriate EOQ model, compute for the recommended order size. Express your answer up to the nearest hundredths (2 decimal places) b. Based on the appropriate EOQ model, when should the company place an order? Express the time interval in number of days up to the nearest hundredths (2 decimal places)/ c. Based on the appropriate EOQ model, what is the company's Total Annual Inventory Cost? Express your answer up to the nearest centavo.
Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model. Currently, it orders 2170 thick gauge roofing sheets per batch. Annual demand is projected to be 43420 sheets. The ordering cost is Php 120. The average carrying cost is equivalent to 20% of the unit acquisition price of Php 400. Lead time is three days. Assume a 365 day year.
Answer the following:
a. Using the appropriate EOQ model, compute for the recommended order size. Express your answer up to the nearest hundredths (2 decimal places)
b. Based on the appropriate EOQ model, when should the company place an order? Express the time interval in number of days up to the nearest hundredths (2 decimal places)/
c. Based on the appropriate EOQ model, what is the company's Total Annual Inventory Cost? Express your answer up to the nearest centavo.
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