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Melur based uses and sells 15,000 units of a products per year with the price of RM60,000. Carrying costs are RM12 per unit per annum and the cost of placing order is RM30. The purchase price per unit is RM4. The lead time is 5 days and therefore Melur Berhad keeps 100 units in inventory as safety stock. Based on the information above compute: i) Economic order quantity of Melur Berhad ii) Number of orders per year

Melur based uses and sells 15,000 units of a products per year with the price of RM60,000. Carrying costs are RM12 per unit per annum and the cost of placing order is RM30. The purchase price per unit is RM4. The lead time is 5 days and therefore Melur Berhad keeps 100 units in inventory as safety stock. Based on the information above compute: i) Economic order quantity of Melur Berhad ii) Number of orders per year

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Melur based uses and sells 15,000 units of a products per year with the price of RM60,000. Carrying costs are RM12 per unit per annum and the cost of placing order is RM30. The purchase price per unit is RM4. The lead time is 5 days and therefore Melur Berhad keeps 100 units in inventory as safety stock. Based on the information above compute:

i) Economic order quantity of Melur Berhad

ii) Number of orders per year 

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