A company buys 25,000 units of a raw material annually, in batch sizes of 800, at a cost of £16 per unit. Each order costs £32 to administer. The holding costs are £4 per unit plus 15% of the purchase price. What annual savings would there be if the company ordered in batches of its EOQ?
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A company buys 25,000 units of a raw material annually, in batch sizes of 800, at a cost of £16 per unit. Each order costs £32 to administer. The holding costs are £4 per unit plus 15% of the purchase price. What annual savings would there be if the company ordered in batches of its EOQ?
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