Please help solve this within 45 min.. please Mega Sdn . Bhd is a wholesaler which buys and sells wide range of products. One of the products is called M3. Each month the company buys 100 units of M3 at cost of RM20 each. Each unit of M3 requires two square feet of space at a cost of RM4 per square foot per annum. Other holding costs are estimated to be 10% of the purchase price. For each order placed, it costs the company RM700. Required: Determine the economic order quantity by using formula.
Please help solve this within 45 min.. please Mega Sdn . Bhd is a wholesaler which buys and sells wide range of products. One of the products is called M3. Each month the company buys 100 units of M3 at cost of RM20 each. Each unit of M3 requires two square feet of space at a cost of RM4 per square foot per annum. Other holding costs are estimated to be 10% of the purchase price. For each order placed, it costs the company RM700. Required: Determine the economic order quantity by using formula.
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...
Related questions
Question
Please help solve this within 45 min.. please
Mega Sdn . Bhd is a wholesaler which buys and sells wide range of products. One of the products is called M3. Each month the company buys 100 units of M3 at cost of RM20 each. Each unit of M3 requires two square feet of space at a cost of RM4 per square foot per annum. Other holding costs are estimated to be 10% of the purchase price. For each order placed, it costs the company RM700.
Required: Determine the economic order quantity by using formula.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.