Professional Documents
Culture Documents
CH 6 f9
CH 6 f9
question 1
eoq 400
pur cost 19200
ordering cost 240
holding cost 240
total cost 19680
question 2
pka co.
calculate the cost of current ordering policy and determine the savings that could be made
eoq 25000
100000 25000
t.p.c 0 0
t.o.c 1562.5 6250
t.h.c 25000 6250
26562.5 12500
savings 14062.5
flg co.
part(d)
eoq 1200
(ii)
no of orders 1200 10000
(i)
no of orders 1200
t.p.c 720000
t.o.c 300
t.h.c 300
720600