month. It costs OR 10 to make and receive an order and holding cost is OR 2.5 per box per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity (EOQ) while not consider the purchase cost? Round-up to the nearest integer a. 180 units O b. None is correct O C. 220 units d. 199 units O e. 500 units

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per
month. It costs OR 10 to make and receive an order and holding cost is OR 2.5 per box per year. The prices
depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity
200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the
Economic Order Quantity (EOQ) while not consider the purchase cost? Round-up to the nearest integer
a.
180 units
O b. None is correct
O c.
220 units
O d. 199 units
e.
500 units
Transcribed Image Text:XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month. It costs OR 10 to make and receive an order and holding cost is OR 2.5 per box per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity (EOQ) while not consider the purchase cost? Round-up to the nearest integer a. 180 units O b. None is correct O c. 220 units O d. 199 units e. 500 units
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