Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit per year cost is PhP136. a. What is the Economic order quantity? b. What is number of times the company will order? c. What is the annual carrying cost? d. What is the annual ordering cost? e. What is the total inventory costs incurred at EOQ?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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2. Based on the records of ABC company, the annual demand for item HP26 has annual
demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit
per year cost is PhP136.
a. What is the Economic order quantity?
b. What is number of times the company will order?
What is the annual carrying cost?
c.
d. What is the annual ordering cost?
e. What is the total inventory costs incurred at EOQ?
Transcribed Image Text:2. Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582 units. The ordering cost per order is PhP105, and the holding per unit per year cost is PhP136. a. What is the Economic order quantity? b. What is number of times the company will order? What is the annual carrying cost? c. d. What is the annual ordering cost? e. What is the total inventory costs incurred at EOQ?
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