Economic order quantity. J and L. Sloan Company estimates the demand for its CQ10 bearings at 50,000 units a year. the bearings cost $6 each. ordering cost is $90 per order and carrying cost is 24 percent of product cost. Required: a) compute the economic order quantity b) how many orders a year will the company place if it orders the economic order quantity?
Economic order quantity. J and L. Sloan Company estimates the demand for its CQ10 bearings at 50,000 units a year. the bearings cost $6 each. ordering cost is $90 per order and carrying cost is 24 percent of product cost. Required: a) compute the economic order quantity b) how many orders a year will the company place if it orders the economic order quantity?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Economic order quantity. J and L. Sloan Company estimates the demand for its CQ10 bearings at 50,000 units a year. the bearings cost $6 each. ordering cost is $90 per order and carrying cost is 24 percent of product cost.
Required:
a) compute the economic order quantity
b) how many orders a year will the company place if it orders the economic order quantity?
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