Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year. a. 600 units and 15 orders b. 178.88 units and 10 orders c. 126.49 units and 15 orders d. 109.54 units and 10 orders
Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year. a. 600 units and 15 orders b. 178.88 units and 10 orders c. 126.49 units and 15 orders d. 109.54 units and 10 orders
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year.
a.
600 units and 15 orders
b.
178.88 units and 10 orders
c.
126.49 units and 15 orders
d.
109.54 units and 10 orders
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