Al Fardan Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month (four weeks). It costs OR 100 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity (EOQ) while not consider the purchase cost? Round-up to the nearest integer Select one: a. 199 units b. 586 units c. 164 units d. 180 units e 600 units

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Al Fardan Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month
(four weeks). It costs OR 100 to make and receive an order and holding cost is OR 3.5 per box per year. The prices
depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499
at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity
(EOQ) while not consider the purchase cost? Round-up to the nearest integer
Select one:
a. 199 units
b. 586 units
c. 164 units
d. 180 units
e. 600 units
Transcribed Image Text:Al Fardan Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month (four weeks). It costs OR 100 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. What is the Economic Order Quantity (EOQ) while not consider the purchase cost? Round-up to the nearest integer Select one: a. 199 units b. 586 units c. 164 units d. 180 units e. 600 units
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