Each year PBB sells 285 units of a product at a price of P600 each. The variable cost per unit is P575 and the carrying cost per unit is P21. Your fixed cost of ordering is P82. 4.1 What is the economic order quantity (whole number)? 4.2 How much are the total carrying costs (nearest hundredths)?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Each year PBB sells 285 units of a product at a price of P600 each. The variable cost per unit is P575 and the carrying cost per unit is P21. Your fixed cost of ordering is P82. 4.1 What is the economic order quantity (whole number)? 4.2 How much are the total carrying costs (nearest hundredths)?
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