Aris! are The annual need of a manufacturing company is 12,000 units and other information below: 15% Annual return on investment... Rs. 2.25 per year Rent, tax and insurance per unit.. Rs. 100 Cost of placing an order. Required: (a) Economic order quantity (b) Number of order (c) Length of inventory cycle
Aris! are The annual need of a manufacturing company is 12,000 units and other information below: 15% Annual return on investment... Rs. 2.25 per year Rent, tax and insurance per unit.. Rs. 100 Cost of placing an order. Required: (a) Economic order quantity (b) Number of order (c) Length of inventory cycle
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required:
(a) Economic order quantity
(b) Optimum number of orders per year
() Total cost of economic order quantity
(d) Time gap between two consecutive orders.
Ans: (a) 500 units (b) 10 times (c) Rs. 50,000 (d) 1.2 month or 3
The annual need of a manufacturing company is 12,000 units and other information ar
below:
Annual return on investment..
15%
Rent, tax and insurance per unit.
Rs. 2.25 per year
Cost of placing an order.
Rs. 100
Required:
(a) Economic order quantity
(b) Number of order
(c) Length of inventory cycle
Hints: Purchase price per unit is assumed to be Rupee 1 if it is not](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa455c16d-ecd4-40c2-8891-56ddeeffcf75%2F78c04f37-c7f0-4525-aade-807ed9d6df33%2Fez0jdmi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
(a) Economic order quantity
(b) Optimum number of orders per year
() Total cost of economic order quantity
(d) Time gap between two consecutive orders.
Ans: (a) 500 units (b) 10 times (c) Rs. 50,000 (d) 1.2 month or 3
The annual need of a manufacturing company is 12,000 units and other information ar
below:
Annual return on investment..
15%
Rent, tax and insurance per unit.
Rs. 2.25 per year
Cost of placing an order.
Rs. 100
Required:
(a) Economic order quantity
(b) Number of order
(c) Length of inventory cycle
Hints: Purchase price per unit is assumed to be Rupee 1 if it is not
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