Homework Answers
Q.2
(a) Economic Order Quantity= √2DS/H
where: D=Demand in units(on annual basis), S = Order Cost(per purchase order). H = Holding Cost(per unit per year)
=√(2*38000*9)/1= √684000/1=827 units
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2. The Hercules Machine Company purchases 38,000 units of a component each year at a price...
Economic Order Quantity
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