avity 8: Operations Manager of Swatch wristwatch wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory cost needed in her analysis. The figures are summarized below. What is the economic order quantity? How much is the total annual inventory cost? And how many units should be purchased? Annual Demand D (units) 5,000 Discount Discount Cost/Unit C Discount Ordering Cost per order Co (Php000) 150 Level Quantity (Php000) Holding Cost as percentage I (Php000) 95% 1 0-999 200 2 1000-1999 200 3 2000 and up 200 18888 (%)

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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ivity 8: QDM
Operations Manager of Swatch wristwatch wants to determine the most optimum inventory practice for the company.
She was able to determine the demand and inventory cost needed in her analysis. The figures are summarized below.
What is the economic order quantity? How much is the total annual inventory cost? And how many units should be
purchased?
Annual Demand D (units)
5,000
Discount
Discount
Cost/Unit C
Discount
Ordering Cost per order Co (Php000)
Holding Cost as percentage I (Php000)
150
Level
Quantity
(Php000)
(%)
95%
1
0-999
200
0%
2
1000 - 1999
200
3%
3
2000 and up
200
6%
Transcribed Image Text:ivity 8: QDM Operations Manager of Swatch wristwatch wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory cost needed in her analysis. The figures are summarized below. What is the economic order quantity? How much is the total annual inventory cost? And how many units should be purchased? Annual Demand D (units) 5,000 Discount Discount Cost/Unit C Discount Ordering Cost per order Co (Php000) Holding Cost as percentage I (Php000) 150 Level Quantity (Php000) (%) 95% 1 0-999 200 0% 2 1000 - 1999 200 3% 3 2000 and up 200 6%
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