Beta Fruit Juice Company operates from south Batinah and they get fruits through a logistic group who supply them the necessary raw materials. The cost of placing the order is RO 1500 and average cost per kilogram is 900 baiza. The other major expenses for the stores are as below: = RO 600 = RO 2000 Water and Electricity charges every month Salary for workers every month Cost of disposal against expiry every month Insurance Cost for the store and the inventory per annum %3D = RO 200 = RO 4500 %3D The yearly demand of the product is 150000 kg. Calculate the economic order quantity and the number of orders per year?
Beta Fruit Juice Company operates from south Batinah and they get fruits through a logistic group who supply them the necessary raw materials. The cost of placing the order is RO 1500 and average cost per kilogram is 900 baiza. The other major expenses for the stores are as below: = RO 600 = RO 2000 Water and Electricity charges every month Salary for workers every month Cost of disposal against expiry every month Insurance Cost for the store and the inventory per annum %3D = RO 200 = RO 4500 %3D The yearly demand of the product is 150000 kg. Calculate the economic order quantity and the number of orders per year?
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Transcribed Image Text:Beta Fruit Juice Company operates from south Batinah and they get fruits through a
logistic group who supply them the necessary raw materials. The cost of placing the
order is RO 1500 and average cost per kilogram is 900 baiza. The other major
expenses for the stores are as below:
= RO 600
= RO 2000
Water and Electricity charges every month
Salary for workers every month
Cost of disposal against expiry every month
Insurance Cost for the store and the inventory per annum
= RO 200
= RO 4500
The yearly demand of the product is 150000 kg. Calculate the economic order quantity
and the number of orders per year?
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