Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost

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Answer Problem #3 : items 9 & 10

Problem 3: Economic Order Quantity
GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per
unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year.
Compute for the following:
9. Economic order quantity
10. Number of orders made on first quarter
11. Total carrying cost
12. Total ordering cost
Transcribed Image Text:Problem 3: Economic Order Quantity GHI Company has an annual demand of 100,000.00 units of Material Y. The ordering cost is 125.00 per order, cost per unit 5.00, and the annual carrying cost per unit is 1.00. Assume that the units will be required evenly throughout the year. Compute for the following: 9. Economic order quantity 10. Number of orders made on first quarter 11. Total carrying cost 12. Total ordering cost
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