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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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