em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero
em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. If the economic order quantity model is used, the economic lot size is
a. 1,500 units
b. 2,250 units
c. 2,750 units
d. None of these
2. At present, the companies total annual inventory cost is
a. 7,500
b. 16,875
c. 22,500
d. 24,375
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