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The following data are for an inventory item in which the EOQ model applies:    Given:     D = 10,000 units (annual demand)                   R = P10 per unit                   P = P500 per order                   C = 25% 0f average inventory    Find:        a.   the number of orders per year  b.    the economic order quantity (EOQ)  c.    the amount in pesos per order

The following data are for an inventory item in which the EOQ model applies:    Given:     D = 10,000 units (annual demand)                   R = P10 per unit                   P = P500 per order                   C = 25% 0f average inventory    Find:        a.   the number of orders per year  b.    the economic order quantity (EOQ)  c.    the amount in pesos per order

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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The following data are for an inventory item in which the EOQ model applies: 
 
Given:     D = 10,000 units (annual demand) 
                 R = P10 per unit 
                 P = P500 per order 
                 C = 25% 0f average inventory 
 
Find:      
 a.   the number of orders per year 
b.    the economic order quantity (EOQ) 
c.    the amount in pesos per order 
d.    the number of days interval between orders 
e.    the total inventory costs
 
 
 
 
 
 
 
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