Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit per year cost is PhP136. a. What is the Economic order quantity? b. What is number of times the company will order? c. What is the annual carrying cost? d. What is the annual ordering cost? e. What is the total inventory costs incurred at EOQ?

Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit per year cost is PhP136. a. What is the Economic order quantity? b. What is number of times the company will order? c. What is the annual carrying cost? d. What is the annual ordering cost? e. What is the total inventory costs incurred at EOQ?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Question

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2. Based on the records of ABC company, the annual demand for item HP26 has annual
demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit
per year cost is PhP136.
a. What is the Economic order quantity?
b. What is number of times the company will order?
What is the annual carrying cost?
c.
d. What is the annual ordering cost?
e. What is the total inventory costs incurred at EOQ?

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