Q3) _suppose that the demand for a product is 2000 per year, and the items are withdrawn uniformly. The order cost is 150$ and the inventory holding cost is 0.5$ per item per month. Assuming shortages are not allowed, find: 1- The economic order quantity. 2- The number of ordering during the year (order frequency). 3- The interval between two orders.
Q3) _suppose that the demand for a product is 2000 per year, and the items are withdrawn uniformly. The order cost is 150$ and the inventory holding cost is 0.5$ per item per month. Assuming shortages are not allowed, find: 1- The economic order quantity. 2- The number of ordering during the year (order frequency). 3- The interval between two orders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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