Question

218. Annual requirement is 7800 units; consumption per week is 150 units. Unit price 5, order
cost 10 per order. Carrying cost 1 per unit and lead time is 3 week, The Economic order
quantity would be:
395 units​

Answer 1

Answer:

Sol:

here sale = 100%

CGS = 75%

GR Margin = 25%

so by applying formula

Required information = given information x %age of required information

%age of given informa

= 40000 x75/ 25

=120000

Answer 2

Explanation:

Annual requirement is 7800 units; consumption per week is 150 units. Unit price 5, order

cost 10 per order. Carrying cost 1 per unit and lead time is 3 week, The Economic order

quantity would be