Answer to Question #350147 in Financial Math for Vickie

Question #350147

A company uses 100000 units per year which is 30 shillings, carrying costs are 1% per month and ordering cost are 250 per order

I) what is the EOQ

Ii) what is the length of the order cycle

III) what is the cost of having stock annually

iv) what would the EOQ be if the compy make the items themselves on a machine with a potential capacity of 600000 units per year





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