Caselet 3: A manufacturing company orders 24,000 units of concrete blocks semi-annually at a price of Php20.00 per unit. Its carrying cost per year is 15% of the price of concrete block and the order cost is Php12.00 per order per year. What is the optimum order quantity? and how many orders should be made each year?
Caselet 3: A manufacturing company orders 24,000 units of concrete blocks semi-annually at a price of Php20.00 per unit. Its carrying cost per year is 15% of the price of concrete block and the order cost is Php12.00 per order per year. What is the optimum order quantity? and how many orders should be made each year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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